Play Life 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 $150,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Play Life'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.) If the sandbox toy project had a residual value of $150,000, would the ARR change? Explain and recalculate if necessary. If the sandbox toy project had a $150,000 residual value, the ARR change. The residual value would cause the yearly to , which will cause the average annual operating income from the investment to (Enter your answer as a percent rounded to two decimal places.) The ARR of the sandbox toy project with a residual value of $150,000 would be %. Does this investment pass Play Life's ARR screening rule? The ARR, exceeds Play Life's minimum required ARR. Therefore, the sandbox toy project passes the company's 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%