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45-50. Assume that you are working as a financial consultant and have been hired to complete a capital budgeting analysis for the Treasured Toy Company,

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45-50. Assume that you are working as a financial consultant and have been hired to complete a capital budgeting analysis for the Treasured Toy Company, Inc. The firm is considering expanding into a new electronic game product line. The cost of the production facility to produce this line of toys is estimated to be $26.5 million att -0. Cash flow estimates for the first five years of the project's life are as follows: Year 1 2 3 4 Estimated Cash Flow (in millions of dollars) $2.50 $10.0 $14.75 $80 56.50 Project cash flows are assumed to occur on December 31 of each year You have calculated the "Weighted Average Cost of Capital (WACC) for Treasured Toy Company applicable to this project 7.0% Given the above information, please calculate the following The project's Net Present Value (NPV). The projects or paytack persed b. The project's regular payback period: c. The project's discounted payback period: d. Based on your analysis, would you recommend that the management of Treasured Toy Company accept or reject this project? Please describe

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