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(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
(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 $1,850,000, and the project would generate incremental free cash flows of $550,000 per year for 7 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?
a. What is the project's NPV?
$________(Round to the nearest dollar.)
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