E Homework: Chapter 12 HW 19 LO 1-2 (Copy) Question 2, S12-3 (similar to) Part 1 of 5 HW Score: 12.5%, 1 of 8 points Points: 0 of 1 Save lay 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 fferent patterns of predicted net cash inflows: (Click the icon to view the data.) alculate the sandbox toy project's payback period. If the sandbox toy project had a residual value of $175,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Play Life's payback period creening rule? alculate the sandbox toy project's payback period. irst, 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.) )= Payback Data table Annual Net Cash Inflows Year Toy action figure Sandbox toy project project Year 1 $ 317,750 $ 540,000 Year 2 317,750 390,000 Year 3 317,750 300,000 Year 4 317,750 260,000 317,750 40,000 Year 5 $ 1,588,750 $ 1,530,000 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%