Toy Time Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.2 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 ARR. If the toy action figure project had a residual value of S150,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Toy Time's ARR screening rule? First, enter the formula, then compute the ARR of the toy action figure project. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) Data Table : | Average annual operating Income from asset 65000 Initial Investment 200000 = - Accounting rate of retum 4.51 % If the toy action figure project had a residual value of $150,000, would the ARR change? Annual Net Cash Inflows If the toy action figure project had a $150,000 residual value, the ARR would change. The residual value would cause the yearly depreciation expense to decrease, which will cause the average annual operating income from the investment to increase 1...... Compute the ARR of the toy action figure project with a residual value of $150,000. (Enter your answer as a percent rounded to two decimal places.) Toy action Sandbox toy figure project project 336,700 S 550,000 336,700 375,000 336,700 300,000 336,700 270,000 336,700 30,000 $ 1,683,500 S 1,525,000 3....... The ARR of the toy action figure project with a residual value of $150,000 is 6.60% 4..... Does this investment pass Toy Time's ARR screening rule? The ARR, in neither case , exceeds Toy Time's minimum required ARR. Therefore, the toy action figure project passes the company's screening rule in both cases 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 excouds 8%. Print Done Choose from any list or enter any number in the input fields and then continue to the next