i only need 2a

A piece of laborsaving equipment has just come onto the market that Mitsui Electronics, Lid., could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: $ 768,000 Purchase cost of the equipment Annual cost savings that will be provided by the equipment Life of the equipment $ 120,000 10 years Required: 1-a. Compute the payback period for the equipment Choose Numerator: Investment required $ 768,000 Payback Period Choose Denominator: Annual net cash inflow $ 120,000 I - = Payback Period Payback period 6.4 years 1-b. if the company requires a payback period of four years or less, would the equipment be purchased? Yes No 2-a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. Choose Numerator: Simple Rate of Return Choose Denominator: initial investment Simple Rate of Return Sample rate of return Annual incremental net operating income