The ARR of the toy action figure project with a residual value of $200,000 is ________

Playtime 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. EEB (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 Playtime's ARR screening rule? First, enter the formula, then computo the ARR of the toy action figure projact. (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 return Data Table Annual Net Cash Inflows Toy action Sandbox toy project Year figure project 321,225 $ 520,000 340,000 310,000 270,000 40,000 S 1,606,125 1480,000 Playtime will consider making capital investments only if the payback period of the project is less than 3.5 years and the 2. 321,225 321,225 321,225 321,225 Total ARR exceeds 8%. PrintDone Enter any number in the edit fields and then click Check