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 ])= years If 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 (1) - affected. The cash inflow from any residual value would occur (2) - the asset's useful operating life and (3) 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 $175.000 is years. Does this investment pass Playmore's payback period screening rule? The payback period is (4) - 3.5 years, so it (5) Playmore's initial screening. i Data Table Annual Net Cash Inflows Year Toy action Sandbox toy figure project project 312,500 $ 518,000 312,500 380,000 312,500 340,000 312,500 240,000 312,500 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%