Toyland Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.1 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 payback period. If the sandbox toy project had a residual value of $175,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Toyland's payback period screening rule? Calculate the sandbox toy project's payback period. First, enter the formula, then calculate the payback period. (Enter amounts in dollars, not millions. Round your answer to two decimal places. Abbreviation used: Amt.Amount.) Full years Amt. to complete recovery in next year / Projected net cash inflow in next year Payback 2 years Annual Net Cash Inflows Year Toy action Sandbox toy figure project project 332,000 $ 332,000 332,000 332,000 332,000 530,000 350,000 300,000 230,000 25,000 1,660,000$ 1,435,000 Toyland will consider making capital investments only if the 2 3 4 Total payback period of the project is less than 3.5 years and the ARR exceeds 8%