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Generate incremental free cash flows

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Reference no: EM132459748

Problem: ?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, 800,000?, and the project would generate incremental free cash flows of ?$650,000 per year for 7 years. The appropriate required rate of return is 8 percent.

Required:

Question 1: Calculate the NPV.

Question 2: Calculate the PI.

Question 3: Calculate the IRR.

Question 4: Should this project be? accepted?

Reference no: EM132459748

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