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1) What is the NPV for the new toy at Tyler's Toys? 2) What is the IRR for the new toy at Tyler's Toys? 3)
1) What is the NPV for the new toy at Tyler's Toys?
2) What is the IRR for the new toy at Tyler's Toys?
3) Which will management accept/reject?
Comparing all methods. Given the following after-tax cash flow on a new toy for Tyler's Toys, find the project's payback period, NPV and IRR. The appropriate discount rate for the project is 12%. If the cutoff period is six years for major projects, determine whether management will accept or reject the project under the three different decision models. Initial cash outflow: $11,100,000 Years one through four cash inflow: $2,775,000 each year Year five cash outflow: $1,110,000 Years sik through eight cash inflow: $489,000 each year What is the payback period for the new toy at Tyler's Toys? 7.27 years (Round to two decimal places.) Under the payback period, this project would be rejected . (Select from the drop-down menu.) What is the NPV for the new toy at Tyler's Toys? S(Round to the nearest cent.)Step by Step Solution
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