Weston Moto Playtime Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, cach costing St milion. Each machine has a five-year ite and zoro residual value The two products have different pantoms of predicted net cash flows (Click the icon to view the data) Calculate the toy action figure projects 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 Playtime'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 was a percent rounded to two decimal places) Accounting Average annual operating income from a Iniment 1000000 305450 327 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 would not change The residual value would cause the yearly which will cause the average annual operating income from the investment to Choose from any list or enter any number in the input fields and then continue to the next question 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 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 chango? Explain and recalculate if necessary. Does this screening rule? if the toy action figure project had a residual value of $225,000, would the ARR change? of the toy action figure project had a $225,000 residual value, the ARR would not change The residual value would cause the yearly 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.) to The ARR of the toy action figure project with a residual value of $225,000 is % Does this investment pass Playtime's ARR screening rule? The ARR exceeds Playtime's minimum required ARR Therefore, the toy action figure project passes the company's screening rule Choose from any list or enter any number in the input fields and then continue to the next question Annual Net Cash Inflows Year 1.... Toy action Sandbox toy figure project project $ 305,450 $ 520,000 305,450 375,000 305,450 310,000 2.... 3.... 4..... 305,450 305,450 280,000 25,000 5. ... $ 1,527,250 $ 1,510,000 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%