Considering major expansion of its product line

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Reference no: EM13874689

Fijisawa, Inc., is considering a major expansion of its product line and has estimated the following free cash flows associated with such an expansion. The initial outlay associated with the expansion would be $2,010,000, and the project would generate free cash flows of $350,000 per year for six years. The appropriate required rate of return is -0.2 percent.

The profit ability index of the expansion is ___?

The internal rate of return is ___?

Should the project be accepted? Why or why not?

Reference no: EM13874689

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