12-19 10270 100% + Question 6: Project evaluation methods The Great Eastern Toys Company is evaluating a new product. The cash flows that are expected from this product over its five years' expected lift are shown below. Note that the final year's cash flow includes $2,000 of working capital to be recovered at the end of the project. Cash Flow Now -$18,000 End of year 1 to 4 5,200 End of year 5 7,200 REQUIRED: a) Compute the following measures: Payback period Discount payback period at a 10% discount rate Net present value at a 10% discount rate Internal rate of return Profitability index b) Should the project be undertaken? 16