The residual value does not affect the computation of the payback and the payback method does not consider cash flows that occur after the payback period Requirement 2. Ws the projects ARR change? Explain your answer Recalculate ARR it changes Rount to two decimal places Select the formula to calculate the ARR Average annual operating income The ARR w now ARR Average amount invested 2421 % when the residual value changes to zero. The average annual operating income numerator) will be lower when the asset does not have a residual value because the depreciation expense is higher Addtionally, the average investment denominator) The ARR changes lower Requirement 3. Assume Steinback Valley screens its potential capital investments using the following decision ort Maximum payback period Minimum accounting rate of return 52 years 17.85% Weinback Valley consider this project further or reject it? The payback period is than the 5.2-year maximum, and the ARR is than the 17.85% minimum Since the investment both decision criteria, Steinback Valley to consider this investment furthe Help me solve this Demodocs example Get more help- Clear all Check antwer