5. Susan is considering adding toys to her gift shop. She estimates that the cost of inventory will be $6,500. The remodeling expenses and shelving costs are estimated at $2,800. Toy sales are expected to produce net cash inflows of $3,300, $3,300, $4,300, and $4,300 over the next four years, respectively. Should Susan add toys to her store if she assigns a three-year payback period to this project? Why or why not? 6. A project has an initial cost of $124,400 and produces cash inflows of $67,200, $78,900, and $87,500 over three years, respectively. What is the discounted payback period if the required rate of return is 10 percent? 7. The Broken Egg is considering a project that will produce sales of $87,000 a year for the next 4 years. The profit margin is estimated at 6 percent. The project will cost $90,000 and will be depreciated straight- line to a book value of zero over the life of the project. The firm has a required accounting return of 11 percent. Using AAR should Broken Egg invest in this project and why