Exercise 14-13 (Algo) Payback Period and Simple Rate of Return Computations [LO14-1, LO14-6] 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? Required: 1a. Compute the payback period for the equipment. 1b. If the company requires a payback perlod 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 14% ? Complete this question by entering your answers in the tabs below. Compute the payback period for the equipment. (Round your answer to 1 decimal place.)