Question
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
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 $1,800,000, and the project would generate incremental free cash flows of $700,000 per year for 5 years. The appropriate required rate of return is 7 percent Please do not use dollar $ signs and commas a. Calculate the NPV Round to the nearest dollar b. Calculate the PI Round to 3 decimal places c. Calculate the IRR. Round to 2 decimal places d. Should this project be accepted? Yes or No
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