Question: All parts please Homework: HW #7 - Chapter 12 Save Score: 0.17 of 1 pt 4 of 9 (4 complete) HW Score: 7.46%, 0.75 of

 All parts please Homework: HW #7 - Chapter 12 Save Score:

All parts please

Homework: HW #7 - Chapter 12 Save Score: 0.17 of 1 pt 4 of 9 (4 complete) HW Score: 7.46%, 0.75 of 10 pts % 512-5 (similar to) Question Help Playland Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.1 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 ARR. If the sandbox toy project had a residual value of $150,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Playland's ARR screening rule? First, enter the formula, then compute the ARR of the sandbox toy project. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) Accounting Data Table Average annual operating income from asset Initial investment rate of return - % Annual Net Cash Inflows Toy action figure Sandbox toy project project Year Year 1. 327,000 $ Year 2. Year 3. 327,000 327,000 327,000 327,000 525,000 390,000 320,000 275,000 50,000 Year 4 Year 5 $ 1,635,000 $ 1,560,000 Total Playland will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%. Enter any number in the edit fields and then click Check Answer. ? Print Done parts remaining Check

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