Annual Net Cash Inflows Toy action figure Sandbox toy Year project project Year 1 $ 335,750 $ 525,000 Year 2 335,750 390,000 Year 3 335,750 310,000 Year 4 4 335,750 260,000 20,000 Year 5 335,750 5 $ Total 1,678,750 $ 1,505,000 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%. 8% Play Life Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.4 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 payback period. If the toy action figure project had a residual value of $225,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Play Life's payback period screening rule? Calculate the toy action figure 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.) = Payback period Accounting rate of return Expected annual net cash inflow Future value Initial investment Net present value Present value HE ore help - Clear all Check answe Residual value