Toy Universe Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.1 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 payback period. If the sandbox toy project had a residual value of $175,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Toy Universe's payback period screening rule? Calculate the sandbox toy 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. Abbreviation used: Amt. = Amount.) Options for formula: Full years/Partial years/Amt. to complete recover in next year/Initial investment/Residual value/Total net cash inflows/Exp. annual net cash inflow/Future Value/Projected Payback net cash inflow in next year years If the sandbox toy project had a residual value of $175,000, would the payback period change? Explain and recalculate if necessary. Would be/Would not be If the investment had a $175,000 residual value, the payback period affected. The cash inflow from any residual value would occur the asset's useful operating life and taken into account when calculating the payback period. At the beginning of/At the end of 15/is not (Round your answer to two decimal places.) years. The payback period if the sandbox toy project had a residual value of $175,000 is Does this investment pass Toy Universe's payback period screening rule? Equal to/Less than/More than The payback period is 3.5 years, so it Toy Universe's initial screening. Does not pass/Passes Data Table x Annual Net Cash Inflows Year Toy action Sandbox toy figure project project 1. $ 335,750 $ 550,000 2. 335,750 370,000 3.. 335,750 330,000 4. 335,750 230,000 5. 335,750 50,000 $ 1,678,750 $ 1,530,000 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%. Print Done