Martin Company is considering the purchase of a new piece of equipment. Relevant information concerning the equipment follows: (Ignore income taxes.) Required: a. Compute the payback period for the equipment. (Round your answer to 1 decimal place.) Payback period years b. If the company requires a payback period of four years or less, would the equipment be purchased? Yes No a. Use straight-line depreciation based on the equipment's useful life. Compute the simple rate of return on the equipment. (Round your answer to 1 decimal place. Omit the "%" sign in your response.) Simple rate of return % b. Would the equipment be purchased if the company's required rate of return is 14%? No Yes