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 toy action figure project's payback period. If the toy action figure project had a residual value of $200,000, would the payback period change? Explain and recalculate if necessary. Does this Investment pass Toy Time's payback period screening rule? Calculate the toy action figure project's payback period, First enter the formula, then calculate the payback period. (Enter amounts in dollars, not millions. Round your answer to two decimal places.) Expected annual net cash inflow Initial investment Payback period years of the toy action figure project had a residual value of $200,000, would the payback period change? Explain and recalculate if necessary of the investment had a $200,000 residual value, the payback period affected. The cash inflow from any residual value would occur the asset's useful operating life and V taken into account when calculating the payback period (Round your answer to two decimal places) es The payback period of the toy action figure project had a residual value of $200,000 is atio Does this investment pass Toy Time's payback period screening rulo? 3.5 years, so it Toy Time's initial screening years The payback period is - Data Table Annual Net Cash Inflows Toy action figure Sandbox toy project project Year Year 1 $ 306,650 $ 510,000 Year 2 306,650 340,000 Year 3 306,650 300,000 Year 4 306,650 306,650 270,000 25,000 Year 5 $ 1,533,250 $ 1,445,000 Total 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%. ye Print Done