K Toy Universe 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. View the predicted annual net cash inflows. Calculate the toy action figure project's ARR. If the toy action figure project had a residual value of $200,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Toy Universe's ARR screening rule? First, enter the formula, then compute the ARR of the toy action figure project assuming there is no residual value. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) Average annual operating income from asset 136,700 Initial investment = Accounting rate of return 1,000,000 = 13.67 % If the toy action figure project had a residual value of $200,000, would the ARR change? If the toy action figure project had a $200,000 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 $200,000. (Enter your answer as a percent rounded to two decimal places.) The ARR of the toy action figure project with a residual value of $200,000 is %.