(?NPV, ?PI, and IRR calculations?) Fijisawa Inc. is considering a major expansion of its product line...

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(?NPV, ?PI, and IRR calculations?) Fijisawa Inc. is consideringa major expansion of its product line and has estimated thefollowing cash flows associated with such an expansion. The initialoutlay would be ?$1, 850,000

and the project would generate incremental free cash flowsof

?$650,000 per year for 66 years. The appropriate required rateof return is 66 percent.

a. Calculate the

NPV.

b. Calculate the

PI.

c. Calculate the

IRR.

d. Should this project be? accepted?

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(?NPV, ?PI, and IRR calculations?) Fijisawa Inc. is consideringa major expansion of its product line and has estimated thefollowing cash flows associated with such an expansion. The initialoutlay would be ?$1, 850,000and the project would generate incremental free cash flowsof?$650,000 per year for 66 years. The appropriate required rateof return is 66 percent.a. Calculate theNPV.b. Calculate thePI.c. Calculate theIRR.d. Should this project be? accepted?

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