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Toy Universe Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each cost $1 million. Each machine has
Toy Universe Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each cost $1 million. Each machine has a 5 year life and zero residential value. The two products have different patterns of predicted cash flow data.
if sandbox toy project had a residential value of $200,000, would the payback change? Does this investment pass Toy Universe's payback period screening rule?
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