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 $1,900,000, and the project would generate incremental free cash flows of $600,000 per year for 5 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?