S12-3 (similar to) is Question Help Playtime 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 sandbox toy project's payback period. If the sandbox toy project had a residual value of $150,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Playtime's payback period screening rule? Calculate the sandbox toy project's payback period. Data Table First, enter the formula, then calculate the payback period. (Enter amounts in dollars, Amt. = Amount.) Year Year 1 Year 2 Year 3 Annual Net Cash Inflows Toy action figure Sandbox toy project project $ 317,750 $ 520,000 317,750 340,000 317,750 330,000 317,750 230,000 317,750 30,000 Year 4 Year 5 $ 1,588,750 $ 1,450,000 Total Playtime 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 Choose from any drop-down list and then click Check Answer. ? parts remaining Clear All Check Answer S12-3 (similar to) is Question Help Playtime 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: B (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 $150,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Playtime'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.) + Payback Choose from any drop-down list and then click Check Answer. ? parts remaining Clear All Check