Toyland 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. EEB (Click the icon to view the data.) Calculate the sandbox toy project's ARR. If the sandbox toy project had a residual value of $225,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Toyland'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.) Accounting - rate of return Average annual operating income from asset 1% i Data Table Annual Net Cash Inflows Year Sandbox toy Toy action roject project 343,000 $ 343,000 343,000 343,000 343,000 figure p 1. 2. 3. 4 5. Total 510,000 350,000 330,000 275,000 40,000 $ 1,715,000 $ 1,505,000 Toyland will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%