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 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 $125,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Playtime'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 2 +( $ 195,000 $ 325,000 2.60 years If the sandbox toy project had a residual value of $125,000, would the payback period change? Explain and recalculate if necessary. If the investment had a $125,000 residual value, the payback period would not be affected. The cash inflow from any residual value would occur at the end of the asset's useful operating life and is not taken into account when calculating the payback period. (Round your answer to two decimal places.) The payback period if the sandbox toy project had a residual value of $125,000 is years. Data table Annual Net Cash Inflows Toy action figure Sandbox toy project project Year $ Year 1 $ 332,000 $ 530,000 Year 2 .... 332,000 375,000 Year 3 .... 3 332,000 325,000 Year 4 ... 332,000 250,000 332,000 Year 5 .... 50,000 $ 1,660,000 $ 1,530,000 Total Playtime will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%