HWK Help Sa The Elberta Fruit Farm of Ontario always has hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received in that shakes the cherry tree, causing the cherries to fall onto plastic tarps that funnel the cherries into bins. Ms. Wright has gathered the following information to decide whether a cherry picker would be a profitable investment for the Elberta Fruit Farm: ation on a cherry picking machine that is being purchased by many fruit farms. The machine is a motorized device a. Currently, the farm is paying an average of $290,000 per year to transient workers to pick the cherries b. The cherry picker would cost $680,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 10-year useful life. Annual out-of-pocket costs associated with the cherry picker would be: cost of an operator and an assistant, $84,000. insurance. $3000; fuel, $%11,000; and a maintenance contract, $14.000 Click here to view Exhibit 138-1 and Exhibit 138-2, to determine the appropriate discount factor using tables Required 1. Determine the annual savings in cash operating costs that would be realized if the cherry picker were 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 20%? 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 four years or less. Would 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 simple rate of return is an accurate guide in investment decisions? Complete this question by entering your answers in the tabs below. Req 2AReq 2BReq 3AReg 38 Req 4AReg 48 Req 1 Based on this computation, does it appear that the simple rate of return is an accurate guide in investment decisions? OYes a. Compute the internal rate of return promised by the cherry picker 4b. Based on t his computation, does it appear that the simple rate of return is an accurate guide in investment decisi Complete this question by entering your answers in the tabs below Req 2A Req 2B Req 3A Req 38 Req 4A Req 48 Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased. Annual savings in cash ting costs Req 2A > imus payuauR perlod of four years or less. Woul purchased? 4a. Compute the internal rate of return promised by the cherry picker. 4b. Based on' thi is computation, does it appear that the simple rate of return is an accurate guide in investment de Complete this question by entering your answers in the tabs below. ces Req 1 Req 3A Req 3B Req 4A Req 4B Compute the simple rate of return expected from the cherry picker. (Round your percentage answer to 2 decimal place e rate of return K Req 1 Req 2B > Required 1. Determine 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 2 points the annual savings in cash operating costs that would be realized if the cherry picker were purchased. Skipped 3a. Compute the payback period on the cherry picker. Fruit Farm will not purchase equipment unless it has a payback period of four years or less. Would the c purchased? 4a. Compute the internal rate of return promised by the cherry picker. 4b. Based on this computation, does it appear that the simple rate of return is an accurate guide in investment decisions Print Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3A Req 38 Req 4A Req 4B Compute the payback period on the cherr picker. (Round your answer to 2 decimal places.) Req 2B Req 38 Mc l. Determine the annual savings in cash operating costs that would be realized if the cherry picker were purcl 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 20%? 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 four years or less. W purchased? 4a. Compute the internal rate of return promised by the cherry picker 4b. Based on this computation, does it appear that the simple rate of return is an accurate guide in investmen Skipped eBook Print Complete this question by entering your answers in the tabs below. References Req 1 Req 2A Req 2B Req 3A Req 3B Req 4A Req 48 Compute the internal rate of return promised by the cherry picker. al rate of re K Req 3B Req 4B > Mc Hill