Data table Play Life will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%. Play Life 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 toy action figure project's payback period. If the toy action figure project had a residual value of $125,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Play Life's payback period screening rule