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.

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Calculate the sandbox toy project's payback period. If the sandbox toy project had a residual value of $125,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Toylands payback period screening rule?

value. The twe froduds twere diflerent gutteens of predided net canh whisws Click, the ioon to vilu the dada) Torlands payback period screening ruke? Calculate the sandbox tity progects payback peried Data table 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%. Culculate the sandbox toy project's payback peried. First, enter the formula, then calculate the payback period. (Enter amounts in dollars, not millions, Round your answer to two decimal nlaric. Abbreviation used Ant = Anount.)