Toy World Products is considering producing toy action figures and sandbox toys. The products 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. (Click the icon to view the data. Calculate the sandbox toy project's ARR. Ir the sandbox toy project had a residual value of $150,000, would the ARR change? Explain and recalculate il necessary. Does this investment pass Toy World's ARR screening rule? First, enter the formula, then compute the ARR of the sandbox toy project. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) + = Average annual operating income from asset 102,000 - X Accounting rate of return 10.20 % Initial investment 1,000,000 Data table S + $ = If the sandbox toy project had a residual value of $150,000, would the ARR change? Explain and recalculate if necessary. If the sandbox toy project had a $150,000 residual value, the ARR would change Year project The residual value would cause the yearly depreciation expense to decrease , which will cause the average annual operating income from the inve (Enter your answer as a percent rounded to two decimal places.) Year 1 Annual Net Cash Inflows Toy action figure Sandbox toy project S 428,750 S 510.000 428,750 370.000 428,750 310.000 Year 2 The ARR of the sandbox toy project with a residual value of $150,000 would be %. Year 3 Year 4 428,750 428,750 270.000 50,000 Year 5 S Total 2.143,750 S 1,510.000 Toy World will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%. Nu D