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 sandbox toy project's payback period. If the sandbox toy 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 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 Ant Amount) Payback W the sandbox toy project had a residual value of $175.000, would the payback period change? Explain and recalculate if necessary If the investment had a $175,000 residual value, the payback period when calculating the payback period (Round your answer to here decimal places) affected. The cash inflow from any residual value would accur the asser's useful operating Me and taken into account The payback period if the sandbox say project had a residual value of $175,000 Does this investment pass Playmore's payback period screening ne The payback period is 35 years, so Playmore's inal screening od. If the sandbox toy project had a residual value of $175,000, would the payback period change riod. ack men Data table aces. Abbrev - X of $ S Annual Net Cash Inflows e, th Toy action figure Sandbox toy ould occur Year project project Year 1.. 312,500 $ 518,000 Year 2. 312,500 380,000 had Year 3. 312,500 340,000 Year 4. k per 312,500 240,000 Year 5.. so it 312,500 50,000 $ Total 1,562,500 $ 1,528,000 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%. Print Done