Calculate the npv for fijisawa inc

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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 $4,950,000, and the project would generate incremental free cash flows of $1,250,000 per year for 5 years. The appropriate required rate of return is 9 percent.

Problem a. Calculate the NPV.

Problem b. Calculate the PI.

Problem c. Calculate the IRR.

Problem d. Should this project be accepted?

Reference no: EM132740967

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