Fijisawa inc is considering a major expansion of its


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 $11,800,000 and the project would generate cash flows of $1,210,000 per year for 20 years. The appropriate discount rate is 6.5 percent.

a. Calculate the NPV.

b. Calculate the PI.

c. Calculate the IRR.

d. Should this project be accepted Why or why? not?

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Financial Management: Fijisawa inc is considering a major expansion of its
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