2- compute the ARR of the Play Life action figure project with a residual value of $ 200,000

Play Life Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1 million. Each machine 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 toy action figure project's ARR. If the toy action figure project had a residual value of $200,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Play Life's ARR screening rule? First, enter the formula, then compute the ARR of the toy action figure project. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) Accounting Initial investment i Average annual operating income from asset Data Table = rate of retum % Annual Net Cash Inflows Toy action figure Sandbox toy Year project project Year 1 $ 332,000 S 510,000 Year 2 332,000 360.000 Year 3 332.000 300.000 Year 4 332,000 250,000 332,000 Year 5 20.000 S 1.630,000 1,440,000 Total Play Life 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 Enter any number in the edit fields and then click Check