5 A plece of labor-saving equipment has just come onto the market that Mitsul Electronics, Limited, could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow Purchase cost of the equipment 5 682,000 Annual cost savings that will be provided by the equipment $ 110,000 Life of the equipment 10 years Required: 1a. Compute the payback period for the equipment. 16. If the company requires a payback period of four years or less, would the equipment be purchased? 2a. Compute the simple rate of return on the equipment . Use straight-line depreciation based on the equipment's useful life. 2b. Would the equipment be purchased if the company's required rate of return is 14%? Book Inferences Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 Reg 2A Reg 28 Compute the payback period for the equipment. (Round your answer to 1 decimal place.) Payback Pood Years Raq 18 M