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Caruso Hardware is adding a new product line that will require an investment of $1,540,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $305,000 the first year, $290,000 the second year, and $255,000 each year thereafter for eight years. The investment has no residual value. Compute the payback period. First enter the formula, then calculate the payback period. (Round your answer to two decimal places.) Amount to complete recovery in next Projected cash inflow in next Full years + year year ) = Payback 5 255000 yearsPlaytime Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.1 million. Each machine has a ve-year life and zero residual value. The two products have different patterns of predicted net cash inflows: a (Click the icon to view the data.) Calculate the sandbox toy project's payback period. If the sandbox toy project had a residual value of $125,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Playtime's payback period screening rule? Calculate the sandbox toy project's payback period. First, enter the formula, then calculate the payback period. (Enter amounts in dollars, not millions. Round your answer to two decimal places. Abbreviation used: Amt. = Amount.) Amt. to complete recovery in next Projected net cash inow in next Full years +( year year ) : Payback +( :T l: m Data table Annual Net Cash inows Toy action figure Sandbox toy project project 332,000 $ 530,000 332,000 375,000 332,000 325,000 332 ,000 250,000 Year5 Ww Total $ 1,660,000 $ 1,530,000 GEt Playtime will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%