$37.($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 $$1,900,000,$ and the project would generate incremental free cash flows of $$650,000$ per year for $7$ years. The appropriate required rate of return is $6$ percent.

a$.$ Calculate the NPV$.$

b$.$ Calculate the $\frac{?}{PI}.$

c$.$ Calculate the IRR.

d$.$ Should this project be accepted?

a$.$ What is the project's NPV$?$

$($Round to the nearest dollar.$)$

b$.$ What is the project's $\frac{P}{?}?$

$($Round to three decimal places.$)$

c$.$ What is the project's IRR?

$\%($Round to two decimal places.$)$

d$.$ Should this project be accepted? $($Select the best choice below.$)$

A$.$ No$.$ The project should be rejected because the project's NPV is negative, $\frac{?}{PI}$ is less than one, and IRR is less than the required rate of return.

B$.$ Yes. The project should be accepted because the project's NPV is positive, $\frac{P}{?}$ is greater than one, and IRR is greater than the required rate of return.