Calculate the internal rate of return and profibility index

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Reference no: EM13726593

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 $2,010,000 and the project would generate cash flows of $460,000 per year for 6 years. The appropriate discount rate is 8.6%

a) Calculate the net present value

b) Calculate the profibility index

c) Calculate the internal rate of return

Reference no: EM13726593

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