5 12 Toyland Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.2 million. Each machine has a five-year ife 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 $225,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Toyland'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 rate of return ind ter If the toy action figure project and a residual value of $225,000, would the ARR change? If the toy action figure project had a $225,000 residual value, the ARR change The residual value would cause the yearly which will cause the average annual operating income from the investment to to Rec Compute the ARR of the toy action figure project with a residual value of $225,000. (Enter your answer as a percent rounded to two decimal places) The ARR of the toy action figure project with a residual value of $225,000 is Choose from any list or enter any number in the input fields and then continue to the next question -) Toyland Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.2 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 $225,000, would the ARR change? Explain and recalculate necessary. Does this investment pass Toyland's ARR screening rulo? TO NO % If the toy action figure project had a residual value of $225,000, would the ARR change? If the toy action figure project had a $225,000 residunt value, the ARR change The residual value would cause the yearly which will cause the average annual operating income from the investment to to .ec Compute the ARR of the toy action figure project with a residual value of $225,000. (Ender your answer as a percent rounded to two decimal places.) The ARR of the toy action figure project with a residual value of $225.000 11 Does this investment pass Toyland's ARR screening rule? The ARR exoneda Toyland's minimum required ARR. Therefore, the toy action figure project poises the company's screening rule > Choose from any list or enter any number in the input fields and then continue to the next question 4) Data Table - X Year Annual Net Cash Inflows Toy action figure Sandbox toy project project $ 400,175 $ 540,000 Year 1 Year 2 400,175 350,000 Year 3 400,175 325,000 Year 4 270,000 400,175 400,175 Year 5 40,000 d $ 2,000,875 $ 1,525,000 Total Toyland will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%. th Print Done the input fields and then continue to the next