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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? image text in transcribed
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2021 Summer - ACCT-2120-M70-PRINCIPLES OF ACCTII Aled brown 0/02/219:49 AM = Homework: Chapter 12 HW 10 LO 1-2 Question 2. S12-3 simila HW Beer 22.736, 0.91 points Seve Score: 1 Toy Universe Product is considering producing to action figures weddy. The respecten mees, whing to Each mare de tot different med at how then to view the Cards by rybaik person the sundtex toyu 200.000 we pred www.yon www orange Calculate the sandino toy projects back period inter the form then the patienten in de compound your new town) rement Expected and match Data Table Year Year 1 $ Year 2 Annual Net Cash Inflows Toy action figure Sandbox toy project project 327,000 $ 525,000 327,000 390,000 327,000 320,000 327,000 250,000 327,000 50,000 Year 3 Year 4 Year 5 $ Total 1,635,000 $ 1,535,000 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 Toy Do Pour conting poyadontrcant sandbos toy. The products and painted matches, cachoeira 1 millonTachmacht mal ala The productor potpredicata now the Come and box toy reportack period the box toy prijed had residui 5200.000 would the paymack period chanye? En wy Dom har Toy Cantopered Buy Far the forma parte do you Are

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