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 lile and zero residual value 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 passa payback period screening rule? CD 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). Total net cash inflows Payback period years If the toy action figure 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 two decimal places.) affected. The cash inflow from any residual value would occur the asset's useful operating ife and taken in The payback period if the toy action figure project had a residual value of $175.000 is years Does this investment pass Playmore's payback period screening rule? The payback period is 35 years, soit Playmore's initial screening Data table. Annual Net Cash Inflows Toy action figure Sandbox toy Year Year 1.... project 312.500 $ project 516,000 Year 2 312,500 300.000 Year 3. 312.500 340,000 Year 4. 312,500 240,000 312.500 50,000 Year 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 35 years and the ARR exceeds 0% Print Done