Playmore Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing 51 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. It 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 rulo? Calculate the sandbox toy projects 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) Full years Art. 1o complete recovery in next year Projected not cash inflow in next year 1- Payback years the end of the It 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 would not be affected. The cash inflow from any residual value would occur asset's useful operating life and is not taken into account when calculating the payback period (Round your answer to two decimal places) The payback period of the sandbox toy project had a residual value of $375,000 is Does this investment pas Playmore's payback period screening rule? years The payback period is equal to 35 years, so it does not pass Playmore initial screening Data table Annual Net Cash Inflows Toy action figure Sandbox toy project project Year Year 1 $ 312,500 $ . 518,000 380,000 Year 2 312,500 . Year 3 312,500 340,000 RRERE Year 4 .. 312,500 312,500 240,000 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 3.5 years and the ARR exceeds 8%