A plece of labor-saving equipment has just come onto the market that Mitsui Electronics, Limited, could use its plants in Japan. Relevant data relating to the equipment follow, Purchase cost of the equipment $425,000 Annual cost savings that will be provided by the equipment $ 85,000 Life of the equipment 18 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 12%? . Complete this question by entering your answers in the tabs below. inces Ref Reg 10 Reg 2A Reg 28 Compute the payback period for the equipment. (Round your answer to 1 decimal place.) Payback Period Years R18 A piece 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 $ 425,000 Annual cost savings that will be provided by the equipment $ 85,000 Life of the equipment 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 12%? Complete this question by entering your answers in the tabs below. ces Req 1A Reg 1B Reg 2A Reg 26 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 le 0.123 should be considered as 12.3%) Simple Rate of Retur