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 He and zoro residual value The two products have different patterns of predicted net cash inflows (Click the loon to view the data.) Calculate the sandbox toy projects ARR. If the sandbox toy 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 sandbox toy project(Enter amounts in dollars, not milions. Enter your answer as a percent rounded to two decimal places) Accounting Average annual operating income from asset Initial investment rate of retur 15 1,000,000 Annual Net Cash Inflows Year Toy action Sandbox toy figure project project 1..... $ 312,500 $ 518,000 2...... 312,500 380,000 3.... 312,500 340,000 4. 240,000 312,500 312,500 5. .... 50,000 $ 1,562,500 $ Total 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%