FULL YEARS / PARTIAL YEARS

AMT. TO COMPLETE RECOVERY IN NET YEAR, INITIAL INVESTMENT, RESIDUAL VALUE, TOTAL NET CASH INFLOW

EPECTED ANNUAL NET CASH INFLOW, FUTURE VALUE, RESIDUAL VALUE, TOTAL NET CASH INFLOWS, PROJECTED NET CASH INFLOW

WOULD BE / WOULD NOT BE

AT THE END / AT THE BEGINNING

IS / IS NOT

EQUAL TO / LESS / MORE

DOES NOT PASS / PASSES

Annual Net Cash Inflows Year Toy action figure project Sandbox toy project 312,500$ 312,500 312,500 312,500 312,500 518,000 380,000 340,000 240,000 50,000 1,528,000 2 4 1,562,500 $ Total 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% Playmore 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 different patterns of predicted net cash inflows EEB (Click the icon to view the data.) Calculate 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 Playmore's payback 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.) )Payback years 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 useful operating life and taken into account when calculating the payback peri (Round your answer to two decimal places.) The payback period if the sandbox toy project had a residual value of $175,000 is Does this investment pass Playmore's payback period screening rule? The payback period is 4affected. The cash inflow from any residual value would occur the asset's years. 3.5 years, so it Playmore's initial screening Choose from any list or enter any number in the input fields and then continue to the next