Playmore Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $11 million. Each machine has a five-year life and zero residual value. The two products have different patterns of predicted net cash inflows.

Calculate the toy action figure project's ARR. If the toy action figure project had a residual value of $175,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Playmore's ARR screening rule? First, enter the formula, then compute the ARR of the toy action figure project.

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. 23 (Click the icon to view the data.) Calculate the toy action figure project's ARR. If the toy action figure project had a residual value of $175,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Playmore's ARR screening rule? First, enter the formula, then compute the ARR of the toy action figure project. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) Average annual operating income from asset = Initial investment 1,000,000 Accounting rate of return % / $ 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 $ 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%. Enter any number in the edit fields and then click Check Answer 4 parts Print Done remaining Check