Calculate the profitability index.

Fijisawa Inc. is considering a major expansion of its product line and has estimated the following Show more 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 $2080000 and the project would generate cash flows of $430000 per year for six years. The appropriate discount rate is 5.2 percent. a. Calculate the net present value. b. Calculate the profitability index. c. Calculate the internal rate of return. d. Should this project be accepted? Why or why not? Show less

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