Toyland Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $$1\mathrm{.}2$ million. Each machine has a five$-$year life and ze residual value. The two products have different patterns of predicted net cash inflows.

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Calculate the toy action figure project's ARR. If the toy action figure project had a residual value of $$175,000,$ 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 toy action figure project assuming there is no residual value. $($Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.$)$

Accounting

Average annual operating income from asset Initial investment

Data table

$\backslash$table$[[$Year$,,$Annual Net Cash Inflows$],[,\backslash$table$[[$Toy action figure$],[$project$]],\backslash$table$[[$Sandbox toy$],[$project$]]],[$Year $1,.........,400,175$$$,550,000],[$Year $2,$cdots,$400,175,370,000],[$Year $3,,400,175,330,000],[$Year $4,,400,175,260,000],[$Year $5,,400,175,50,000],[$Total$,,2,000,{875}_{{?}_{?}}$$$,1,560,000$