parts 2-6

Piay Lifo Products is considering producing toy action foures and sandbox toys. The products require diflerent specialized machines, each costing $1 million. Each machine has a fre-yoar iff and zero residual value. The two prodocts have different patterns of predicted net cash infows. Cick the ioon to view the data) Calculale the loy action figure project's ARR. If the toy action figure project had a rosidual value of $200,000, would the ARR change? Explain and tecalculate it necensary. Does this investment pass Pay Lto's ARR screening rule? Data table Play Life will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%