Toy Time 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 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 ARR. If the sandbox toy project had a residual value of $225,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Toy Time's ARR screening rule? Data Table - X First, enter the formula, then compute the ARR of the sandbox toy project. (Enter amounts in dollars, not millions. Accounting Average annual operating income from asset I Initial investment = rate of return = % Annual Net Cash Inflows Year Toy action Sandbox toy figure project project 1. . . . . . . . . . . . . . . $ 317,750 $ 500,000 2............... 317,750 340,000 3..... 317,750 310,000 4 . . . . . . . . . . . . . . 317,750 317,750 280,000 40,000 5.... 1,588,750 $ 1,470,000 Total Enter any number in the edit fields and then click Check Answer. 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%