Playland Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each casting $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 date.) Calculate the sandbox toy project's ARR. If the sandbox toy project had a residual value of S150,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Playland'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 perc Data table Accounting rate of return Initial Investment Average annual operating Income from asset 99,000 $ S 1,000,000 9.90 If the sandbox toy project had a residual value of $150.000, would the ARR change? Explain and recalculate if necessary. Annual Net Cash Inflows Toy action figure Sandbox toy Year project project Year 1 ..........$ 305,450 $ 520,000 Year 2 305,450 370,000 Year 3 305,450 330,000 If the sandbox toy project had a $150,000 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 Year 4 305,450 305,450 250,000 25,000 (Enter your answer as a percent rounded to two decimal places.) Year 5 HER %. $ The ARR of the sandbox toy project with a residual value of $150,000 would be 1,527.250 S Total 1.495,000 Playland will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%