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

$10,500,000,

and the project would generate cash flows of

$1,320,000

per year for 20 years. The appropriate discount rate is

10.2

percent.

a. Calculate the NPV.

b. Calculate the PI.

c. Calculate the IRR.

d. Should this project be accepted? Why or why not?