Colchester Company is considering purchasing a new piece of equipment. Relevant information concerning the equipment follows: (Ignore income taxes.) Purchase cost $375,000 Annual cost savings that will be provided by the equipment $ 62,500 Life of the equipment 15 years Required: 1-a. Compute the payback period for the equipment. (Round your answer to 1 decimal place.) Payback period year(s) 1-b. If the company rejects all proposals with a payback period of more than five years, will the equipment be purchased? O No O Yes 2-a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life, assuming $0 salvage value. (Round your answer to 1 decimal place.)