Homework 100 w Hete Svet 14 Exercise 14-13 (Algo) Payback Period and Simple Rate of Return Computations (L014-1,6014-6) 0.6 points Shop A piece of labor saving equipment has just come to the market that Mitsui Electronics Limited, could use to reduce costs in one of its plants in Japan. Relevant dota relating to the equipment follow Purchase cost of the equipment $724,500 Annual cost savings that will be provided by the equipment $ 115,000 Life of the equipe 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 equipment be purchased? 2n Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipments useful life 25 Would the equipment be purchased if the company's required rate of return is 1597 cock References Complete this question by entering your answers in the tabs below. Reg 1A Neg 15 Reg 2 Reg 20 Compute the payback period for the equipment. (Round your answer to 1 decimal place.) Payback Period Years Aeg 10 > Homework 100 Seresit Subm 14 Exercise 14-13 (Algo) Payback Period and Simple Rate of Return Computations (L014-1, LO14-6] 06 points Suped A piece of labor saving equipment has just come onto the market that Mitsui Electronics, Umsted, could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow. Purchase cost of the equipment $724,500 Annual cost savings that will be provided by the equipment $ 115.000 Life of the equipment 12 years Required: 1a. Compute the payback period for the equipment 16. If the company requires a payback period of four years or less, would the equipment be purchased? 2a. Compute the simple rate of return on the equipment. Use straight-Sne depreciation based on the equipment's useful 2b. Would the equipment be purchased if the company's required rate of return is 15%? ook o References Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2A Req20 If the company requires a payback period of four years or less, would the equipment be purchased? Yes No C Reg 1 Reg 2 > Homework 10 we Save te 14 06 DO Exercise 14-13 (Algo) Payback period and Simple Rate of Return Computations (L014-4, 014-6) A piece of labor saving equipment has just come onto the market that Mitsui Electronics, Umted, could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow Purchase cost of the event $ 224,500 Annual cost savings that will be provided by the equipment $ 115,00 Life of the equipent 12 years Required: 1o. Compute the payback period for the equipment 1b, the company requires a payback period of four years or less, would the equipment be purchased? 2. Compute the simple rate of return on the equipment Use straight line depreciation based on the equipment's use 2b. Would the equipment be purchased if the company's required rate of return is 157 00h References Complete this question by entering your answers in the tabs below. Reg 1A Reg 16 Reg 20 Req2A 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. 0,123 should be considered as 12.3%) Simple Rate of Reum ALUE Skipped provided by the equipment $ 115,000 Life of the equipment 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 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 15%? book References Complete this question by entering your answers in the tabs below. Req 1A Reg 18 Reg 2A Reg 28 Would the equipment be purchased if the company's required rate of return is 15%? Yes ONO Reg 2A NE
