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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
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 zerd residual value. The two products have different pattems 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 $175,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Toy Universe's ARR screening rude? First, enter the formula, then compute the ARR of the toy action figure project. (Enter amounts in dollars, not milions. Enter your answer as a percent rounded to two decimal places.) Average annual operating income from asset 1100000 Initial investment 637500 Accounting rate of retum
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