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 11%. 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:

$10,100,000

Years one through four cash inflow:

$2,525,000 each year

Year five cash outflow:

$1,010,000

Years six through eight cash inflow:

$467,667 each year

Question content area bottom

Part 1

What is the payback period for the new toy at Tyler's Toys?

enter your response here

years(Round to two decimal places.)

Part 2

Under the payback period, this project would be

rejected

accepted

. (Select from the drop-down menu.)

Part 3

What is the NPV for the new toy at Tyler's Toys?

$enter your response here

(Round to the nearest cent.)

Part 4

Under the NPV rule, this project would be

rejected

accepted

. (Select from thedrop-down menu.)

Part 5

What is the IRR for the new toy at Tyler's Toys?

enter your response here%

(Round to two decimal places.)

Part 6

Under the IRR rule, this project would be

rejected

accepted

. (Select from thedrop-down menu.)