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 $329,000 $ 70,000 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 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 14%? nis