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solve please Playtime Products is considering producing toy action figures and sandbox toys. The products require dfflerent specialized machines, each costing $11 milion. Each machine
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Playtime Products is considering producing toy action figures and sandbox toys. The products require dfflerent specialized machines, each costing $11 milion. Each machine has a fre year Ifle and zero residual vatue The two products havo different patterns of prodictod net canh inflows (Click the icon to vinw the data) Calculate the sandbox toy projects ARR. If the sandbox toy project had a residual value of $125,000, would the ARR change? Explain and recalculate if necessany Does this investment pass Playtine's ARR screening rule? Fint enter the formuls, then compute the ARR of the sandbox toy peopect (Enter ameunts in dollars. not milloes Enter your answer as a percent robinded to fwo decimal places) Accountino = rate of retum Data table 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% Step by Step Solution
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