GP Returnt The Elberta Fruit Farm of Ontario always has hired transient workers to pick its annual cherry crop. Ja Wright, the farm manager, just received information on a cherry picking machine that is being purcha many fruit farms. The machine is a motorized device that shakes the cherry tree, causing the cherries plastic tarps that funnel the cherries into bins. Ms. Wright has gathered the following information to de whether a cherry picker would be a profitable investment for the Elberta Fruit Farm: pints a. Currently, the farm is paying an average of $230,000 per year to transient workers to pick the che b. The cherry picker would cost $620,000. It would be depreciated using the straight-line method an have no salvage value at the end of its 8 vear useful life. c. Annual out-of-pocket costs associated with the cherry picker would be: cost of an operator and an $90,000; insurance, $4,000; fuel, $16,000; and a maintenance contract, $14,000. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor using t Required: 1. Determine the annual savings in cash operating costs that would be realized if the cherry picker wer purchased. 2a. Compute the simple rate of return expected from the cherry picker. 2b. Would the cherry picker be purchased if Elberta Fruit Farm's required rate of return is 12%? 3a. Compute the payback period on the cherry picker. 3b. The Elberta Fruit Farm will not purchase equipment unless it has a payback period of six years or le the cherry picker be purchased? 4a. Compute the internal rate of return promised by the cherry picker. 4b. Based on this computation, does it appear that the simnle rate nf mnt decisions