Toy World Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.2 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 toy action figure project's payback period. If the toy action figure project had a residual value of $125,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Toy World's payback period screening rule? Calculate the toy action figure project's payback period. First enter the formula, then calculate the payback period (Enter amounts in dollars, not milions. Round your answer to two decimal places.) Payback period years If the toy action figure project had a residual value of $125,000, would the payback period change? Explain and recalculate if necessary If the investment had a $125,000 residual value, the payback period affected. The cash inflow from any residual value would occur the asset's useful operating life and taken into account when calculating the payback period. (Round your answer to two decimal places.) The payback period if the toy action figure project had a residual value of $125,000 is years. Does this investment pass Toy World's payback period screening rule? The payback period is 3.5 years, so it Toy World's initial screening Te re x Data table rel C Annual Net Cash Inflows Toy action figure Sandbox toy project project Year Year 1 $ 321,225 $ 500,000 Year 2 321,225 360,000 Et Year 3 321,225 330,000 6,0 Year 4 321,225 321,225 280,000 50,000 th Year 5 $ 1,606,125 $ de Total 1,520,000 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%. Print Done period change? Explain and recalculate if necessary. Does this Calculate the toy action figure project's payback period. First enter the formula, then calculate the payback period. (Ente If the $125,000, Accounting rate of return If the payback per Expected annual net cash inflow ng life and (Rou Future value The Initial investment d a residual a Doe: Net present value od screening The Present value Residual value Total net cash inflows