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: $360,000 Purchase cost of the machine Annual cost savings that will be provided by the machine Life of the machine $ 75,000 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. 26. Would the machine 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 Reg 1B Reg 2A Req 2B Compute the payback period for the equipment. (Round your answer to 1 decimal place.) Payback period years 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: $360,000 Purchase cost of the machine Annual cost savings that will be provided by the machine Lite of the machine $ 75,000 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 15%? Complete this question by entering your answers in the tabs below. Req 1A Reg 18 Req 2A Reg 28 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 i.e. 0.123 should be considered as 12.3%) Simple rate of return