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NPV PI and IRR calculations Fijisawa Inc is considering a major expansion of its product line and has estimated the following free cash flows associated with such an expansion The initial outlay

(NPV, PI, and IRR calculations) Fijisawa Inc. is considering a major expansion of its product line and has estimated the following free cash flows associated with such an expansion. The initial outlay would be $1,950,000, and the project would generate incremental free cash flows of $450,000 per year for 6 years. The appropriate required rate of return is 9 percent.

a. Calculate the NPV.

b. Calculate the PI.

c. Calculate the IRR.

d. Should this project be accepted?

Apr 27 2020 View more View Less

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