BUS 121-1080: Managerial Accounting-Fall 2021-Cuyamaca College Serat Rahimi & 11/20/21 9:05 PM | Homework: Chapter 12 Homework Question 4, S12-5 (simil... Part of 6 HW Score: 87.32%, 17.46 of 20 points Points: 0.75 of 1 Save 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 sandbox toy project's ARR. If the sandbox toy project had a residual value of $175,000, 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 sandbox toy project. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) Accounting Average annual operating income from asset 101,000 Initial investment 1.000.000 Data table rate of return 10.10 % S + $ If the sandbox toy project had a residual value of $175,000, would the ARR change? Explain and recalculate if necessary. If the sandbox toy project had a $175.000 residual value, the ARR would change. Annual Net Cash Inflows Toy action figure Sandbox toy Year project project Year 1 ......... $ 371,500 $ 530.000 The residual value would cause the yearly depreciation expense to decrease, which will cause the average annual operating income from the investment to increase (Enter your answer as a percent rounded to two decimal places.) Year 2 371,500 Year 3 371.500 The ARR of the sandbox toy project with a residual value of $175,000 would be % 350,000 330,000 270.000 25,000 Year 4 371,500 371,500 Year 5 $ 1,857,500 $ 1,505,000 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 Help me solve this Video Get more help = Homework: Chapter 12 Homework Question 7, E12-21A (si. Part 2 of 2 HW Score: 87.32%, 17.46 of 20 points Points: 1.71 of 4 Save Fielding Hardware is adding a new product line that will require an investment of $1,520,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $300,000 the first year, S270,000 the second year, and $230,000 each year thereafter for eight years. The investment has no residual value. Compute the payback period. First enter the formula, then calculate the payback period. (Round your answer to two decimal places.) Full years + Amount to complete recovery in next year Projected cash inflow in next year ) = Payback ) = years +