Annual Net Cash Inflows Toy action figure Sandbox toy Year project project Year 1 $ 335,750 $ 530,000 Year 2 335,750 390,000 Year 3 335,750 325,000 Year 4 335,750 280,000 335,750 25,000 Year 5 $ 1,678,750 $ 1,550,000 Total Toy World will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%. Toy World 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 sandbox toy project's payback period. If the sandbox toy project had Does this investment pass Toy World's payback period screening rule? residual value of $200,000, would the payback period change? Explain and recalculate if necessary. C... Calculate the sandbox toy 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. Abbreviation used: Amt. = Amount.) Payback Expected annual net cash inflow Future value Projected net cash inflow in next year Residual value Total net cash inflows