A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Limited, could use to reduce costs in o its plants in Japan. Relevant data relating to the equipment follow: $ 530,000 Purchase cost of the equipment Annual cost savings that will be provided by the equipment Life of the equipment $ 100,000 10 years Required: 1a. Compute the payback period for the equipment. 1b. 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 15%? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Compute the payback period for the equipment. (Round your answer to 1 decimal place.) Payback Period Years