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Playtime Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing Sf miltion. Each machine has a

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Playtime Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing Sf miltion. Each machine has a five-year life and zero tesidual value. The mo products have diflerent pattoms of predicted net cash inflows (Click the icon to view the data.) Caloulate the toy action fiqure project's ARR. If the toy action figure project had a residual value of $175,000, would the ARR change? Explain and recalculate if necessary, Does this imvestment pass Playtime's ARR scrooning rule? Fint onter the formula, then compute the ARR of the toy action figure project. (Enter amounts in dollars, not milions. Enter your answer as a percent rounded to two docimal places.) Data table Playtime will consider making capital investments only it the payback period of the project is less than 3.5 years and the ARR exceeds 8%

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