17%, 3.17 of 4 points Points: 0.17 of 1 Save Toy Universe Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1 million. Each machinem has a five-year life and zero residual value. The two products have different patterns of predicted net cash inflows (Click the icon to view the data.) Calculate the sandbox toy project's ARR. If the sandbox toy project had a residual value of $150,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Toy Universe's ARR screening rule? First, enter the formula, then compute the ARR of the sandbox toy project. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places) Accounting Average annual operating income from asset 228750+ Initial investment 1,000,000 rate of return 22.88 % Data table Year Year 1 Year 2 Annual Net Cash Inflows Toy action figure Sandbox toy project project $ .. 428,750 $ 520,000 428,750 360,000 428,750 320,000 428,750 280,000 428,750 40,000 $ 2,143,750 $ 1,520,000 Year 3 Year 4 .. Year 5 Total Toy Universe will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%. Print Done