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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
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 6 years for major projects,
determine whether management will accept or reject the project under the three different decision models.
Initial cash outflow: $10,800,000
Years one through four cash inflow: $2,700,000 each year
Year five cash outflow: $1,080,000
Years six through eight cash inflow: $498,000 each year
What is the payback period for the new toy at Tyler's Toys?
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