Playmore Products is ponsidering producing toy action flgures and sandbox boys. The products require dillerent specialized machines, each oosting $1 million. Each machine has a flve-year life and zero residual value. The two products have diflerent patiems of predcted net cash inflows. "(Click the icon to view the data.) Calculabe the sandboo toy projects ARR. If the sandboo toy project had a residual value of \$175,000, would the ARR change? Explain and recalculate if necessary. Does this imestment pass Playmore's ARR screening rule? First, enter the formula, then compute the ARR of the sandbooc toy project. (Enter amounts in dollars, not millons. Enter your answer as a percent rounded to bwo decimal places.) Acoounting (1) =rateofretum= If the sandbox toy peoject had a residual value of $175,000, would the ARR change? Explain and recalculate if necessary. If the sandbox toy project had a $175,000 residual value, the ARRR (3) change. The residul value would catuse the yearly (4) to (5) , which will cause the average annual operating income from the investment to (b) (Enber your answer as a perpent rounded to two decimal places.) The ARR of the sandbox boy project with a residual value of $175,000 would be*e. Does this investment pass Playmore's ARR screening rule? The ARR, (7) expeeds Playmore's minimum required ARR. Therefore, the sandbox boy project passes the company's screening rule (8) 1: Dath Table Playmore wil consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR. exceeds B\%