Playmore 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 toy action figure project's payback period. If the toy action figure project had a residual value of $175,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Playmore's payback period screening rule? Calculate the toy action figure 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.) = Payback period Choose from any drop-down list and then click Check Answer. ? parts remaining Clear All Check Answer Annual Net Cash Inflows Toy action figure Sandbox toy project project Year Year 1 $ 312,500 $ 518,000 Year 2 312,500 380,000 Year 3 312,500 340,000 Year 4 312,500 312,500 240,000 50,000 Year 5 5 $ 1,562,500 $ 1,528,000 Total Playmore will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%. 4 parts remaining