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: Amt. = Amount.) Full years + Amt. to complete recovery in next year Projected net cash inflow in next year ) = Payback 2. + 102000 340000 ) = 2.3 years If the sandbox toy project had a residual value of $175,000, would the payback period change? Explain and recalculate if necessary the asset's useful operating life and is not taken into account when calculating the 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 at the end of payback period. (Round your answer to two decimal places.) The payback period if the sandbox toy project had a residual value of $175,000 is years. Does this investment pass Playmore's payback period screening rule? The payback period is V 3.5 years, so it Playmore's initial screening. 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: Amt. = Amount.) + Amt. to complete recovery in next year Projected net cash inflow in next year ) = Payback Full years 2 + 102000 340000 ) = 2.3 years If the sandbox toy project had a residual value of $175,000, would the payback period change? Explain and recalculate if necessary. the asset's useful operating life and is not taken into account when calculating the 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 at the end of payback period. (Round your answer to two decimal places.) would be The payback period if the sandbox toy project had a residual value o ears. Does this investment pass Playmore's payback period screening rule would not be The payback period is 3.5 years, so it Playmore's initial screening. 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: E: (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: Amt. = Amount.) Full years + Amt. to complete recovery in next year Projected net cash inflow in next year ) = Payback 2 + 102000 340000 2.3 years If the sandbox toy project had a residual value of $175,000, would the payback period change? Explain and recalculate if necessary. the asset's useful operating life and is not taken into account when calculating the 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 at the end of payback period. (Round your answer to two decimal places.) The payback period if the sandbox toy project had a residual value of $175,000 is at the beginning of years Does this investment pass Playmore's payback period screening rule? at the end of The payback period is 3.5 years, so it Playmore's initial screening. 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: E: (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: Amt. = Amount.) Full years + Projected net cash inflow in next year ) = Payback Amt. to complete recovery in next year 102000 2 + 340000 2.3 years If the sandbox toy project had a residual value of $175,000, would the payback period change? Explain and recalculate if necessary. the asset's useful operating life and is not taken into account when calculating the 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 at the end of payback period. (Round your answer to two decimal places.) is The payback period if the sandbox toy project had a residual value of $175,000 is years. Does this investment pass Playmore's payback period screening rule? is not The payback period is V 3.5 years, so it Playmore's initial screening. Data table Year Year 1... Year 2.. Annual Net Cash Inflows Toy action figure Sandbox toy project project $ 312,500 $ 518,000 312,500 380,000 312,500 340,000 312,500 240,000 312,500 50,000 $ 1,562,500 $ 1,528,000 Year 3.. Year 4.. Year 5... Total Playmore will consider making capital investments only if the payback period of the project is less than 3.5 years the ARR exceeds 8%. Print Done