1. 1. Abdullah & Sons Corporation 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 $8,000,000, and the project would generate incremental free cash flows of $2,000,000 per year for 5 years. The appropriate required rate of return is 7 percent. (6 Marks)

1. Calculate the NPV and suggest that should the project be accepted?
2. Calculate the PI.
3. Calculate the IRR.
4. If Abdullah & Sons Corporation required rate of return is changed to 14 percent, then should this project be accepted.