E$4$ Q$24$ have different patterns of predicted net cash inflows:

View the predicted annual net cash inflows.

period screening rule?

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.$)$

If the sandbox toy project had a residual value of $$175,000,$ would the payback period change? Explain and recalculate if necessary.

If the investment had a $$175,000$ residual value, the payback period

$]$ affected. The cash inflow from any residual value would occur

when calculating the payback period.

$($Round your answer to two decimal places.$)$

The payback period if the sandbox toy project had a residual value of $$175,000$ is

years.

Does this investment pass Playland's payback period screening rule?

The payback period is

$3\mathrm{.}5$ years, so it

Playland's initial screening.

$\text{'}$ the asset's useful operating life and

taken into account

Playland will consider making capital investments only if the

payback period of the project is less than $3\mathrm{.}5$ years and the

ARR exceeds $8\%.$