Toy Universe 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. B3 (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 $200,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Toy Universe's ARR screening rule? Data Table First, enter the formula, then compute the ARR of the toy action figure project. (Enter and decimal places.) Annual Net Cash Inflows Average annual operating income from asset , Initial investment Year 1..... ........ 2 Toy action Sandbox toy figure project project 335,750 $ 510,000 335,750 340,000 335,750 325,000 335,750 230,000 335,750 50,000 . . . . . . . . . . . . . . . 3 . . . . . " 5. ............ 1,678,750 $ 1,455,000 Total Toy Universe will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%