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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 $2,080,000, and the project would generate cash flows of $430,000 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?
americas current account ca deficit the trade deficit plus net income payments and netunilateral transfers rose as a
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Jonstone Nurseries, Inc., incurred depreciation expenses of $31,300 last year. The sales were $212,000 and the addition to retained earnings was $18,405. The firm paid interest of $5,100 and dividends of $7,500. The tax rate is 34%. What is the amoun..
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