Adams Manufacturing Company is considering purchasing a machine that could reduce labor costs in one of its facilities in North Carolina. The relevant information for the machine follow: Purchase cost of the machine Annual cost savings that will be provided by the machine Life of the machine $378,000 $ 70,000 12 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 machine be purchased? 2a. Compute the simple rate of return on the machine. Use straight-line depreciation based on the machine's useful life. 2b. Would the machine be purchased if the company's required rate of return is 16%? 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 < Req 1A Req 1B >