K Playtime Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.1 million. Each machine has a five-year life and zero residual value. The two products have different pattems of predicted net cash inflows. Click the icon to view the data) Calculate the toy action figure project's ARR. If the toy action figure project had a residual value of $225,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Playtime's ARR screening rule? First, enter the formula, Phen 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.) Average annual operating income from asset 112.000 Initial investment 1,100,000 Accounting rate of retum 10.18 the toy action figure project had a residual value of $225,000, would the ARR change? if the toy action figure project had a $225,000 residual value, the ARR would change The residual value would cause the yearly depreciation expense to decrease, which will cause the average annual operating income from the investment to increase Compute the ARR of the toy action figure project with a residual value of $225,000. (Enter your answer as a percent rounded to two decimal places) The ARR of the toy action figure project with a residual value of $225,000 is Wideo Get more help- Clear all Final check Data table Annual Net Cash Inflows Toy action figure Sandbox toy Year project project Year 1........... $ 332,000 $ 500,000 Year 2..... 332,000 360,000 Year 3........... 332,000 320,000 Year 4........... 332,000 230,000 332,000 40,000 Year 5.. $ 1,660,000 $ 1,450,000 Total Playtime will consider making capital investments only if the ayback period of the project is less than 3.5 years and the ARR exceeds 8%. Print Done Playtime Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.1 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 toy action figure project's ARR. If the toy action figure project had a residual value of $225,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Playtime's ARR screening rule? First, enter the formula, 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.) $ Average annual operating income from asset 112,000 Accounting Initial investment 1,100,000 rate of return 10.18 % If the toy action figure project had a residual value of $225,000, would the ARR change? If the toy action figure project had a $225,000 residual value, the ARR would change. The residual value would cause the yearly depreciation expense to decrease, which will cause the average annual operating income from the investment to increase First, enter the formula, 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.) $ Average annual operating income from asset 112,000 Initial investment 1,100,000 = Accounting rate of return 10.18 % If the toy action figure project had a residual value of $225,000, would the ARR change? If the toy action figure project had a $225,000 residual value, the ARR would change. The residual value would cause the yearly depreciation expense to decrease, which will cause the average annual operating income from the investment to increase Compute the ARR of the toy action figure project with a residual value of $225,000. (Enter your answer as a percent rounded to two decimal places.) The ARR of the toy action figure project with a residual value of $225,000 is %. Get more help Clear all Final check Data table Annual Net Cash Inflows Toy action figure Sandbox toy Year project project Year 1........ $ 332,000 $ 500,000 Year 2......... 332,000 360,000 Year 3..... 332,000 320,000 Year 4... 332,000 230,000 332,000 40,000 Year 5....... $ 1,660,000 $ 1,450,000 Total Playtime 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