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 10%. 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:

$13,800,000

Years one through four cash inflow:

$3,450,000

each year

Year five cash outflow:

$1,380,000

Years six through eight cash inflow:

$574,000

each year