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

Calculate the toy action figure project's ARR. If the toy action figure 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?

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3rd blank: would or would not be 5-6th blank: decrease or increase

6th blank: in either case, in neither case, in only one case 7th blank: in both cases, in neither case, in only one case

i Data Table X Annual Net Cash Inflows Toy action figure Sandbox toy project project Year Year 1 $ 371,500 $ 510,000 Year 2 371,500 370,000 Year 3 310,000 Year 4 371,500 371,500 371,500 230,000 50,000 Year 5 $ 1,857,500 $ 1,470,000 Total 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%. Print Done 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 decimal places.) Accounting rate of return . % If the toy action figure project had a residual value of $225,000, would the ARR change? If the toy action figure project had a $225,000 residual value, the ARR change. The residual value would cause the yearly to which will cause the average annual operating income from the investment to Compute the ARR of the toy action figure project with a residual value of $225,000. (Enter your answer as a percent rounded to two decimal places.) The ARR of the toy action figure project with a residual value of $225,000 is %. Does this investment pass Toyland's ARR screening rule? The ARR, exceeds Toyland's minimum required ARR. Therefore, the toy action figure project passes the company's screening rule 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. (Click the icon to view the data.) Calculate the toy action figure project's ARR. If the toy action figure 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 toy action figure project. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) Accounting rate of return . = . = % If the toy action figure project had a residual value of $225,000, would the ARR change? If the toy action figure project had a $225,000 residual value, the ARR change. The residual value would cause the yearly to which will cause the average annual operating income from the investment to Compute the ARR of the toy action figure p 225,000. (Enter your answer as a percent rounded to two decimal places.) depreciation expense The ARR of the toy action figure project wit is %. net cash inflows Does this investment pass Toyland's ARR: net cash outflows The ARR, exceeds Toyland's minimum required ARR. Therefore, the toy action figure project passes the company's screening rule Accounting v + = rate of return . = % $225,000, would the ARR change? I value, the ARR change. Accounting rate of return If Accumulated depreciation If Annual depreciation Average annual net cash inflow T Average annual operating income from asset Initial investment Expected annual net cash inflow to which will cause the average a residual value of $225,000. (Enter your answer as a per Accounting rate of return Future value If the toy action figure project had a residual value of $225 Initial investment If the toy action figure project had a $225,000 residual vali Net present value Present value The residual value would cause the yearly Residual value Total cash inflows Compute the ARR of the toy action figure project with a res.uu. Turuv vI Y--, VVU. In your IIUTIU! uu u perc ea