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Play Life 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: E (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 $125,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Play Life's payback period screening rule? - X Data Table 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.) Full years + Amt. to complete recovery in next year + Projected net cash inflow in next year ) = Payback years ) = Year Year 1 Year 2 Annual Net Cash Inflows Toy action figure Sandbox toy project project $ 317,750 $ 530,000 317,750 350,000 317,750 330,000 317,750 275,000 317,750 50,000 $ 1,588,750 $ 1,535,000 Year 3 Year 4 Year 5 Total 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%. Print Done Enter any number in the edit fields and then click Check