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 (Click the icon to view the data.) Calculate the sandbox toy project's ARR. If the sandbox toy project had a residual value of $150,000, would the ARR change? Explain and recalculate if 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 143000 S Initial investment 1,000,000 Accounting rate of retum 14.3 % = Data Table Annual Net Cash Inflows Year Toy action Sandbox toy figure project project 1...............S 40D,175 S 550,000 2............... 40D,175 370,000 40D,175 325,000 4...... .. 400,175 280,000 40D,175 40.000 5. ... 2,000,875 S 1,565,000 Total 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 89. Print Done