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 $2,000,000, and the project would generate incremental free cash flows of $550,000 per year for 7 years. The appropriate required rate of return is 6 percent.

a. Calculate the NPV.

b. Calculate the PI.

c. Calculate the IRR.

d. Should this project be accepted?