Playtime 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: (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. Data Table First, enter the formula, then calculate the payback period. (Enter amounts in dollars, not millions. Round your answer to two decimal places. Abbreviation used: A Full years + Amt. to complete recovery in next year I Projected net cash inflow in next year Annual Net Cash Inflows ) = ) = Payback years Year Toy action Sandbox toy figure project project ......... 428,750 $ 550,000 428,750 340,000 428,750 330,000 428,750 275,000 5 .... 428,750 40,000 $ 2,143,750 $ 1,535,000 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%. Enter any number in the edit fields and then click Check Answer. Print Done 3 parts Clear All remaining Uneck