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compute arr of the sandbox toy project and fill in the blanks Playmore Products is considering producing toy action figures and sandoox toys. The products

compute arr of the sandbox toy project
and fill in the blanks
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image text in transcribed
Playmore Products is considering producing toy action figures and sandoox toys. The products require dilorent spocalized machnoes, each costing s1 milion. Each machine has a five year ife and zere residuad valua. The two products have deterent patserns of pedictod net cash irfows: (Clak, the iach to view the datas) Calculato the sandbox foy projocts ARR. it the sandbox toy project had a residua value of 5175,000 , would the ARR change? Explun and recalculate if necestary. Does this investment pass Plamore's ARR screening nule? If the sandbox toy project had a rosidual value of $175,000, would the ARR change? Explain and repalcolate if necessary If the sandbor toy project had a $175,000 residual vaho, the AFR chathe. The residual vilue would cause the yearty to . Which wit cause the average annual operating incame trom the investrent to (Enter your anwer as a percent rounded to two decimal places.) The APR of the sandeox toy projoct with a residual value of $176,000 would be Does this imwestrnent pass Paymore's ARt steening nule? The ARR. , exceeds Playmore's minimum roquived ARR. Therefore, the sandbax toy projoct passos the cormpanys aereening nide Data table Playmore will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%

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