%) S12-5 (book/static) Question Help * Playmore Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1 million. Each machine has a five-year ife and zero residual value. The two products have different paterns of predicted net cash infiows EE (Click the icon to view the data) Calculate the sandbox toy project's ARR. If the sandbox toy project had a residual value of $175,000, would the ARR change? Explain and recalculate if necessary. Does this nvestment pass Playmore's ARR screening rule? First, enter the formula, then compute the ARR of the sandbox toy project. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) Average annual operating income from asset Initial investment rate of retum 1,000,000 . 10.56 % 105,600 If the sandbox toy project had a residual value of $175,000, would the ARR change? Explain and recalculate if necessary. If the sandbox toy project had a $175,000 residual value, the ARA V change