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Year Toy action figure project Sandbox to project 1 $336,700 $510,000 2 $336,700 $370,000 3 $336,700 $330,000 4 $336,700 $275,000 5 $336,700 $50,000 Total $1,683,500

Year Toy action figure project Sandbox to project

1 $336,700 $510,000

2 $336,700 $370,000

3 $336,700 $330,000

4 $336,700 $275,000

5 $336,700 $50,000

Total $1,683,500 $1,535,000

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Toy Time 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. E (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 $125,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Toy Time's ARR screening rule? wowowe pornowwwwwwwww Accounting Average annual operating income from asset Initial investment rate of return 96,700 1 $ 1,200,000 8.06 = If the toy action figure project had a residual value of $125,000 would the ARR change? If the toy action figure project had a $125,000 residual value, the ARR would change The residual value would cause the yearly depreciation expense to decrease, which will cause the average annual operating income from the investment to increase Compute the ARR of the toy action figure project with a residual value of $125,000. (Enter your answer as a percent rounded to two decimal places.) The ARR of the toy action figure project with a residual value of $125,000 is Enter any number in the edit fields and then click Check Answer. 1 part remaining Clear All Check Answer 25 ... 80 F3 F5 FA F7 FB F9 F10 Full F12 $ A & ) 5 6 7 8 9 0 delete E R. T Y } 0

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