Points: 0.77 of 1 Save Toy Time 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 sandbox toy project's payback period. If the sandbox toy project had a residual value of $225,000, wuld the payback period change? Explain and recalculate if necessary Does this investment pass Toy Time's payback period screening rule? Calculate the sandbox toy 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. Abbreviation used: Amt. -Amount.) Projected net cash inflow in next year )= Payback 300,000 )- 2.73 years Full years 2 Amt, to complete recovery in next year 220,000 If the sandbox toy project had a residual value of $225,000, would the payback period change? Explain and recalculate if necessary If the investment had a $225,000 residual value, the payback period would not be life and is not taken into account when calculating the payback period. (Round your answer to two decimal places.) The payback period if the sandbox toy project had a residual value of $225,000 is affected. The cash inflow from any residual value would occur at the end of the assets useful operating 2.97 years (Round your answer to two decimal places.) The payback period if the sandbox toy project had a residual value of $225,000 is 297 years Data table Annual Net Cash Inflows Toy action figure Sandbox toy Year project project Year 1........... $ 336,700 $ 540,000 Year 2........ 336,700 340,000 Year 3....... 336,700 300,000 Year 4...... 336,700 250,000 336,700 20,000 Year 5....... $ 1,683,500 $ 1,450,000 Total Toy Time will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%. Print Done