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 loy action figure project's ARR. If the loy action figure project had a residual value of $125,000, 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 toy action figure project (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decili Data Table Average annual operating income from asset 143,000 / 1 Initial investment 1,000,000 = = Accounting rate of return 14,30 % Annual Net Cash Inflows $ Year If the toy action figure project had a residual value of $125,000, would the ARR change? If the toy action figure project had a $125,000 residual value, the ARR would change. 1... The residual value would cause the yearly depreciation expense to decrease , which will cause the average annual operating income from the investment to increase 2... Toy action Sandbox toy figure project project 343,000 $ 540,000 343,000 360.000 343,000 300.000 343,000 275,000 343,000 40,000 3............... Compute the ARR of the toy action figure project with a residual value of $125.000. (Enter your answer as a percent rounded to two decimal places.) 4. .. ... The ARR of the toy action figure project with a residual value of $125,000 is % 5. ... 1.715.000 $ 1.515.000 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 8%. Print Done