Toy Universe Products is considering producing toy action figures and sandbox toys. The product require different specialized machines, each costing $1 million. Each machine has a five year life and zero residual value. the two products have different patterns of predicted net cash inflows.

Calculate the projects ARR. if sandbox toy project had a residual of $225,000 would the ARR change? Does this investment pass the screenkng rule?

Jante consider product on for wd wardex toy. The products are der erst, wer In The different pattoms of predicted not thindow mcck the icon to view the da:) Caledin ve sandbox toy orech ARR. e sardoor de la poesia and will share and when their an Tayar First, enter the formula then compute the ARR of Motor Onder own in our rotetom.tr a percent touted to do Account dud Poe Data Table - - X ntei Lima Year Year 1 Year 2 Annual Net Cash Inflows Toy action figure Sandbox toy project project $ 335,750 $ 500,000 335,750 390,000 335,750 330,000 335,750 270,000 335,750 30,000 --- Year 3 . Year 4 Year 5 --- $ Total 1,678,750 $ 1,520,000 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