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Playtime Products is producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1 million. Each machine has a five
Playtime Products is 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 residential value. The two products have different patterns of predicted net cash inflows.
Calculae fhe toy action figure projects ARR. If the toy action figure project had a residential value of 150,000, would the ARR change? Does this investment pass Playtimes ARR screening rule?
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