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: EE (Click the icon to view the data.) Calculate the toy action figure project's payback period. If the toy action figure project had a residual value of $150,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Playtime's payback period screening rule? Calculate the toy action figure project's payback period. First enter the formula, then calculate the payback period. (Enter amounts in dollars, not millions. Round your answor to two decimal places.) Payback period years If the toy action figure project had a residual value of $150,000, would the payback period change? Explain and recalculate if necessary. If the investment had a $150,000 residual value, the payback period taken into account when calculating the payback period. Round your answer to two decimal places.) The payback period if the toy action figure project had a residual value of $150,000 is Does this investment pass Playtime's payback period screening rule? The payback period is affected. The cash inflow from any residual value would occur the asset's useful operating life and years. 3.5 years, so it V Playtime's initial screening Calculate the toy action figure 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.) Payback period years Accounting rate of return Expected annual net cash inflow If the lue of $150,000, would the payback period change? Explain and recalculate if necessary. f the Future value V affected. The cash inflow from any residual value would e, the payback period k period take Initial investment Rou Present value The Net present value Residual value Total net cash inflows ect had a residual value of $150,000 is yeans Data Table Annual Net Cash Inflows Year Toy action Sandbox toy project figure project 550,000 370,000 320,000 230,000 40,000 1,857,500 $ 1,510,000 371,500 S 371,500 371,500 371,500 371,500 2 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%