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. E: (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 $125,000, would the ARR change? Explain and recalculate if nocessary. Does this investment pass Play Life'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.) Accounting Tale of return = -X i Data Table if the toy action figure project had a residual value of $125,000, would the ARR change? If the toy action figure project had a $125,000 residual value, the ARR change Annual Net Cash Inflows The residual value would cause the yearly 10 . which will cause the average annual operating income from the investment to Compule the ARR of the toy action figure project with a residual value of $125.000 (Enter your answer as a porcent rounded to two decimal places.) % The ARR of the toy action figure project with a residual value of $125,000 is Does this investment pass Play Life's ARR screening rule? Year Toy action Sandbox toy figure project project 1..... $ 317,750 $ 520,000 2. ........... 317,750 390,000 3 317.750 300,000 4 317,750 250,000 317.750 20,000 5 S 1.598 750 $ 1,450,000 Total The ARR exceeds Play Life's minimum roquired ARR. Therefore, the toy action figure project passes the company's screening rule Play Lifo will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 9% Print Done RVICE Onlin Solut Study Test Textb