(NPV, PI, and IRR calculations) 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 $1,960,000, and the project would generate cash flows of $380,000 per year for six years. The appropriate discount rate is 4 percent.

1. Calculate the net present value.
2. Calculate the profitability index.
3. Calculate the internal rate of return.
4. Should this project be accepted? Why or why not?