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Homework: HW #10-Chapter 12 Save Score: 0.83 of 1 pt 43 of 9 (3 complete) HW Score: 28.33%, 2.83 of 10 pts &S12-4 (similar to)
Homework: HW #10-Chapter 12 Save Score: 0.83 of 1 pt 43 of 9 (3 complete) HW Score: 28.33%, 2.83 of 10 pts &S12-4 (similar to) Question Help * Playtime Products is considering producing tov ction gures and sandbox toys. The products require different specialized machines each costing S 1.2 million each machine hBS products eve different patterns of predicted net cash inflows. EEB (Click the icon to view the data.) Ive-year ife anc zero residual value. The to Calculate the toy action figure projects ARR. If the toy action figure project had a residual value of $150,000, would the ARR change? Explain and recalculate if necessary. Does this investment pasa Playtime's ARR screening rule? First, enter the fomula, then compute the ARR of the toy action figure project. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) Accounting Data Table Average annual operating inoorne from asset Iritial investment rate of return Annual Net Cash Inflows Year Toy action figure project Sandbox toy 530,000 370,000 310,000 275,000 20,000 $ 2,143,750 $1,505,000 Playtime will consider making capital investments only if the payback period of the project is less than 3.5 years and the 428,750 $ 428,750 428,750 428.750 428,750 Total ARR exceecs 896. Enter any number in the edit fields and then click Check Answer Print Done parts remainng Clear All Check
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