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?