Playland Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.2 million. Each machine has a five-year life and zero residual value. The two products have different patterns of predicted net cash inflows: 5: (Click the icon to view the data.) Calculate the sandbox toy project's payback period. If the sandbox toy project had a residual value of $150,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Playland's payback period screening rule? 2. Calculate the sandbox toy project's payback period. First, enter the formula, then calculate the payback period. (Enter amounts in dollars, not millions. Round your answer to two decimal places. Abbreviation used: Amt. = Amount.) + Amt. to complete recovery in next year Projected net cash inflow in next year ) = Payback Full years + ) = years - Data table Annual Net Cash Inflows Toy action figure Sandbox toy Year project project Year 1 ......... $ 332,000 $ 520,000 Year 2 332,000 370,000 Year 3 332,000 320,000 332,000 270,000 Year 5 332,000 20.000 $ 1,660,000 $ 1,500,000 Total 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% Year 4 Print Done