Multiple Cholce $1\mathrm{.}667$ points

A venture will provide a net cash inflow of $$57,000$ in Year $1.$ The annual cash flows are projected to grow at a rate of $7$ percent per year forever. The project requires an initial investment of $$739,000$ and has a required return of $15\mathrm{.}6$ percent. The compary is somewhat unsure about the growth rate assumption. At what constant rate of growth would the compary fust break even?

$7\mathrm{.}75$ percent

$7\mathrm{.}89$ percent

$9\mathrm{.}48$ percent

$9\mathrm{.}29$ percent

$8\mathrm{.}49$ percent

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