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acc help Play Life Products is considering producing foy action figures and sandbox toys. The products require different specialized machines, each costing $1 million. Each
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Play Life Products is considering producing foy 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 $125,000 would the ARR change? Explain and recalculate if necessary. Does this investment pass Play LileARR 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 Data table Play Lifewill consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8% Step by Step Solution
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