Playtime Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each conting 31 million Each machine has a five-year life and zero residual value. The two products have different patterns of predicted net cash intlows ELE (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 $200,000, 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 answer to two decimal places) Initial investment Expected annual net cash inflow Payback period 1000,000 - $ 336 700 2.97 years If the toy action figure project had a residual value of $200,000 would the payback period change? Explain and recalculate if necessary If the investment had a $200.000 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) MAN The payback period if the toy action figure project had a residual value of $200.000 is years Data table Annual Net Cash Inflows Toy action figure Sandbox toy project project Year er to tv Year 1 $ 336,700 $ 540,000 Year 2 336,700 .... 340,000 Year 3 336,700 320,000 Year 4 336.700 alculate .. 250,000 50.000 Year 5 336.700 any res $ GA 1,683,500 $ Total 1,500,000 period. 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%