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Data Table Dla lavie Toy World will consider making capital investments only if the payback period of the project is less than 3.5 years and
Data Table Dla lavie 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%. Question list K Toy World 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 Question 1 Toy World's ARR screening rule? Question 2 x/s Question 3 Question 4
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