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Can you please help me with the last part. Toy Time Products is considering producing toy action figures and sandbox toys. The products require different

Can you please help me with the last part.image text in transcribed

Toy Time Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.1 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 $225.000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Toy Time'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.) i Data Table - X Average annual operating income from asset 116,700 I / Initial investment 1,100,000 = = Accounting rate of return 10.81 % $ If the toy action figure project had a residual value of $225,000, would the ARR change? Annual Net Cash Inflows If the toy action figure project had a $225,000 residual value, the ARR would change Year The residual value would cause the yearly depreciation expense to decrease , which will cause the average annual operating income from the investment to increase 1............... 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.) 2...... Toy action Sandbox toy figure project project $ 336,700 $ 520,000 336.700 390,000 336.700 325,000 336.700 260.000 336.700 25,000 1,683.500 $ 1,520.000 The ARR of the toy action figure project with a residual value of $225,000 is 18.79 %. 3............. 4............... 5. ......... Total Toy Time 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

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