Toy Universe Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1 milion 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 $200,000, 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) + Amt. to complete recovery in next year Projected net cash inflow in next year) - Payback years If the sandbox toy project had a residual value of $200,000, would the payback period change? Explain and recalculate if necessary, If the investment had a $200,000 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 (Round your answer to two decimal places) The payback period if the sandbox toy project had a residual value of $200,000 is tiot Does this Investment pass Toy Universe's payback period screening rule? The payback period is 35 years, soit Toy Universe's initial screening ces years 55 - Data Table wa Annual Net Cash Inflows Toy action figure Sandbox toy project project Year hel be Year 1 $ 327,000 $ 500,000 Year 2 327,000 390,000 tel Year 3 327,000 300,000 Year 4 327,000 327,000 250,000 50,000 al ess Year 5 ual $ 1,635,000 $ 1,490,000 Total al Top 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%. ace! y pro Erse's Print Done 3.5 ye