i Data Table Annual Net Cash Inflows Year Sandbox toy Toy action figure project project 321,225 $ 321,225 321,225 321,225 321,225 530,000 370,000 320,000 230,000 30,000 1,606,125$ 1,480,000 2. 3. 5. Total Playland will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8% Print Done Toy Time 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. (Click the icon to view the data.) Calculate the sandbox toy project's ARR. If the sandbox toy project had a residual value of $125,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Toy Time's ARR screening rule? First, enter the formula, then compute the ARR of the sandbox toy project. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) Accounting Average annual operating income from asset Initial investment- rate of return