A piece of laborsaving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow (currency is in thousands of yen, denoted by ): (Ignore income taxes.) Purchase cost of the equipment 264,000 Annual cost savings that will be provided by the equipment 39,100 Life of the equipment 12 years -------------------------------------------------------------------------------- Requirement 1: (a) Compute the payback period for the equipment. (Round your answer to 1 decimal place.) Payback period years (b) If the company requires a payback period of 6 years or less, would the equipment be purchased? (Click to select)YesNo Requirement 2: Use straight-line depreciation based on the equipment's useful life. (a) Compute the simple rate of return on the equipment.(Round your answer to 1 decimal place. Omit the "%" sign in your response.) Simple rate of return % Requirement 3: Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, six years ago she paid $19,000 for 880 shares of Malti Company's common stock. She received a $704 cash dividend on the stock at the end of each year for six years. At the end of six years, she sold the stock for $22,600. Kathy would like to earn a return of at least 15% on all of her investments. She is not sure whether the Malti Company stock provided a 15% return and would like some help with the necessary computations. (Ignore income taxes.) To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1 and Exhibit 12B-2. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (a) Determine the net present value. (Round your answer to the nearest dollar amount. Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.) Net present value $