Question: Please answer a,b,c, and d (NPV, PI, and IRR calculations) Fijisawa Inc. is considering a major expansion of its product line and has estimated the
Please answer a,b,c, and d
(NPV, PI, and IRR calculations) Fijisawa Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial outlay would be $1,850,000, and the project would generate incremental free cash flows of $650,000 per year for 7 years. The appropriate required rate of return is 7 percent. a. Calculate the NPV. b. Calculate the PI. c. Calculate the IRR. d. Should this project be accepted? a. What is the project's NPV? (Round to the nearest dollar.)
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