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

$2,000,000,

and the project would generate incremental free cash flows of

$700,000

per year for

6

years. The appropriate required rate of return is

9

percent.

Calculate the

NPV.

b. Calculate the

PI.

c. Calculate the

IRR.

d. Should this project be accepted?