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Toy Tme Products is considering prodocing toy action foures and sandbox toys. The products roquiro ditterent spodialized machines, oach costing $1 malion. Each machike has

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Toy Tme Products is considering prodocing toy action foures and sandbox toys. The products roquiro ditterent spodialized machines, oach costing \$1 malion. Each machike has a vive-year life ank cero residual value. The two produchs have different pattems of predicted net eash inflowi. III (Cick the icos to view the data.) Toy Time is ARR screening rule? If the sandbox iby prugect had a realdual value of 5150.000 , would the ARR change? Explain and recalculate it necessary If the sandbox iny project had a 5150,000 residual value, the ARA chanen. The residual vation would cause the yearly (Einter your anwwer as a percent rounded to two decimal places.) The AAH of the sarubox loy project with a residual vakue of 5150,000 woud be Data table 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%

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