Martin Company is considering the purchase of a new piece of equipment. Relevant information concerning the equipment follows: (Ignore income taxes.) Required: Compute the payback period for the equipment. (Round your answer to 2 decimal places.) Payback period | years If the company rejects all proposals with a payback period of more than 5 years, would the equipment be purchased? No Yes 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.) Simple rate of return would the equipment be purchased if the company's required rate of return is 5%? Yes No