Given the following after-tax cash flow on a new toy for Tylers Toys, find the projects discounted payback period, NPV, and profitability index. The appropriate discount rate for the project is 12%. Initial cash outflow: $10,400,000 Years one through four cash inflow: $2,600,000 each year Years five, six and seven cash inflow: $750,000 each year

If the cutoff period is six years for major projects, determine whether management will accept or reject the project under the three different decision models?