Financial Management - NPV, PI, AND IRR CALCULATIONS

GREENWICH 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 ASSOCIATED WITH THE EXPANSION WOULD BE $250,000 AND THE PROJECT WOULD GENERATE INCREMENTAL FREE CASH FLOWS OF $750,000 PER YEAR FOR 6 YEARS. tHE APPROPRIATE REQUIRED RATE OF RETURN IS 11 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