A piece of laborsaving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce oosts 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 S 270,000 provided by the equipment Life of the equipment 60,000 12 years Required 1-a. Compute the payback peniod for the equipment. Payback Period Choose Numerator:C Choose Denominator:Payback Poriod Payback pericd o years 1-b. If the company requires a payback period of four years or less, would the equipment be purchased? Yes No 2-a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life Simple Rate of Return Choose Numerator Choose Denominator: Simple Rate of Return Simple rate of return 2.b. Would the equipment be purchased if the company's required rate of return is 15%? Yes No