Please just explain how to find the "average annual operating income from asset" and "the ARR of the toy action figure project with a residual value of $200,000 is"

Toy World 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. (Click the icon to view the data.) Calculate the toy action figure project's ARR. If the toy action figure project had a residual value of $200,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Toy World's ARR screening rule? ..... First, enter the formula, then compute the ARR of the toy action figure project. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) Accounting Average annual operating income from asset . Initial investment rate of return $ 123,000 $ 1,100,000 11.18 % If the toy action figure project had a residual value of $200,000, would the ARR change? If the toy action figure project had a $200,000 residual value, the ARR would change. The residual value would cause the yearly depreciation expense to decrease , which will cause the average annual operating income from the investment to increase Compute the ARR of the toy action figure project with a residual value of $200,000. (Enter your answer as a percent rounded to two decimal places.) The ARR of the toy action figure project with a residual value of $200,000 is 14.82 %. Does this investment pass Toy World's ARR screening rule? The ARR, in either case exceeds Toy World's minimum required ARR. Therefore, the toy action figure project passes the company's screening rule in both cases Data table Annual Net Cash Inflows Toy action figure Sandbox toy project project Year Year 1 $ 343,000 $ 510,000 Year 2 .... 343,000 340,000 Year 3 .... 343,000 310,000 Year 4 343,000 260,000 343,000 40,000 Year 5 .... $ 1,715,000 $ 1,460,000 Total Toy World will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%