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Toy Universe Products is considering producng toy action figures and sandbox toys. The products iegure a flerent specialized machines, oach costing 51 milion. Each machine

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Toy Universe Products is considering producng toy action figures and sandbox toys. The products iegure a flerent specialized machines, oach costing 51 milion. Each machine has a five.year life and zoro residual value. Tha two products thave tatfeient parterns of predicted not cash inflows (Cick the icon to view the dith ) Calculate the toy action figure proyocr's ARR. If the toy action frigue propect had a residual value of 5225,000 , would the ARRR change? Explain and recalculate if necessary. Does thils investrient pass Toy Unwerses ARR screening rialo? Toy Universe will consider making capital investments ony the payback period of the project is less than 3.5 years and the ARR exceeds 8%

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