$ 600,000 A piece of labor-saving equipment has just come onto the market that Mitsui 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 Annual cost savings that will be provided by the equipment $ 100,000 Life of the equipment 12 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 12%? Complete this question by entering your answers in the tabs below. Reg 28 Req 1A Reg 18 Req2A Compute the payback period for the equipment. (Round your answer to 1 decimal place.) Payback Period Years Ron Req 18 > Req 1A Req 10 Reg 2A Reg 2B Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.) Simple Rate of Return %