Playtime Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.1 million. Each machine has a five-year life and zero residual value. The tvo products have different pattems of predicted net cash inflows. Ell (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 S150,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Playtime'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.) Data Table Average annual operating income from asset Initial investment - rate of retum 220000 1,100,000 Annual Net Cash Inflows Year Toy action figure project Sandbox toy project 428,750 S 550,000 375,000 310,000 270,000 25,000 $ 2,143,750 S 1,530,000 428,750 428,750 428,750 428,750 Tota Playtime will consider making capital investments only if the payback perlod 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