he residual value does not affect the computation of the equirement 2. Will the project's ARR change? Explain you elect the formula to calculate the ARR. Average annual operating income + Average The ARR will now be 24.21 %. The ARR changes when the residual value changes to lower when the asset does not have a residual value. Requirement 3. Assun screens its potential Maximum payback pe 5.2 years longer Minimum accounting 17.85% shorter Will Steinback Valley co further or reject it? The payback period is than the 5.2-year maximum, and Help me solve this Demodors exampl the payback and the payback method does not consider c In your answer. Recalculate ARR if it changes. Round to two verage amount invested = ARR changes to zero. The average annual operating income (numerat value. ts potential capital investn ears 5% r reject it? maximum, and the ARR is ample Get more help lowing decision criteria higher lower than the 17.85% minimum. Since Brook Park Lodge expansion would be a good investment. Assume Steinback Valle cash flows that occur after the payback period. wo decimal places. umerator) will be lower because the depreciation expense is higher . Additiona on criteria: does not meet meets imum. Since the investment SEP both decision criteria, Steinback Valley Cle because the depreciation expense is higher . Additionally, the average investment (denominator) is both decision criteria, Steinback Valley will not want will want to consider this investment further. Select the formula to calculate the ARR Average annual operating income The ARR will now be 24.21% Jom Unang, Revenant AKA 1 it changes. Hound to two decimal places. Average amount invested ARR when the residual value changes to zero. The average annual operating income (numerator) will be lower when the asset does not have a residual value. The ARR changes lower Requirement 3. Assume Steinback Valley screens its potential capital investments using the following decision criteria: Maximum payback period Minimum accounting rate of return 5.2 years 17.85 % Will Steinback Valley consider this project further or reject it? becam