Toyland Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.2 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 sandbox toy project's payback period. If the sandbox toy project had a residual value of $200,000, 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.) +(Amt. to complete recovery in next year + Projected net cash inflow in next year) = Payback Full years 2 + ) = years Enter any number in the edit fields and then click Check Answer. ? nsidering producing toy action figures and sandbox toys. The products require each costing $1.2 million. Each machine has a five-year life and zero residual patterns of predicted net cash inflows: - X Data Table pe of g yland's Roun: 1 S Kt year Annual Net Cash Inflows Toy action figure Sandbox toy Year project project Year 1 $ 314,300 $ 520,000 Year 2 314,300 375,000 Year 3 314,300 310,000 Year 4 314,300 230,000 Year 5 314,300 50,000 1,571,500 $ Total 1,485,000 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%. -.---.. Print Done er in the edit fields and then click Check Answer. Clear All Check