What Daniel said. You may be able to make arrangements for a 7-day ticket allowing the same thing. I think there is also a way to arrange a ticket that will allow you all to travel cheaper as a group, but that restricts options for splitting up and exploring in groups.
I'd say take the train as close as you can to where you want to go. Travelling on the tube can be very time consuming if you are travelling across London or between distant zones.
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