Please help answer question #2 (Ch. 7 HW), correctly for each Required question 1-4 below. Thanks.

2. The Elberta Fruit Farm of Ontarlo always has hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager just received information on a cherry picking machine that is being purchased by many fruit farms. The machine is a motorized device that shakes the cherry tree, causing the cheres 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 66 a. Currently, the farm is paying an average of $200.000 per year to transient workers to pick the cherries. b. The cherry picker would cost $480.000. It would be depreciated using the straight-line method and it would have no salvage value Annual out of pocket costs associated with the cherry picker would be cost of an operator and an assistant, $94,000; insurance, $3.000 fuel $11.000 and a maintenance contract. $14,000 Click here to view Exhibt 78.1 and Exhibit 78 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 26. Would the cherry picker be purchased Elberta Fruit Farm's required rate of return is 8462 3a Compute the payback period on the cherry picker 35. The Elberta Fruit Farm will not purchase equipment unless it has a payback period of seven years or less. Would the cherry picker be purchased? 4. Compute the internal rate of return promised by the cherry picker. 4. 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 RA 3 Red ME GE 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 8%? 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 seven years or less. Would the cherry picker be purchased? 4a. Compute the internal rate of return promised by the cherry picker. 46. 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. Reg 1 Reg 2A Reg 26 Reg 3A Reg 3 Reg 4 Reg 45 Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased Annual savings in casin operating costs Req2A > 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 retur expected from the cherry picker. 2b. Would the cherry picker be purchased if Elberta Fruit Farm's required rate of return is 8%? 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 seven 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. Reg 1 Reg 2 Reg 20 Red 3A Reg 30 Reg4A Reg 45 Compute the payback period on the cherry picker (Round your answer to 2 decimal places.) Paytac porod yo 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 26. Would the cherry picker be purchased if Elberta Fruit Farm's required rate of return is 8%? 3a. Compute the payback period on the cherry picker. 3b. The Elberta Frukt Farm will not purchase equipment unless it has a payback period of seven 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. Reus Reg 2A Rog 20 Red 3A Rog Reg Reg 45 Compute the internal rate of return promised by the cherry picker (round your answer to the nearest whole percent.) EXHIBIT 78-1 Present Value of $1 11 16 22 5 5 B 9 10 11 Periods 4 5 62 79 89 99 10% 12 13 10 15% 17 18% 19 20 21 235 245 25% 1 0962 0952 0943 09350926 0917 0909 0.901 0893 0885 0877 0870 0.862 0.855 0.847 08400833 082608200.813 0.806. 0800 2 0.925 0.907 0.890 0.873 08570842 0826 0812 0797 0783 0769 07560743 0.731 0.7180705 0694 0.683 0672 0661 0650 0640 3 0889 0.864 08400816 0794 072 0751 0731 07120693 0675 0658 0641 0624 060905930579 0564 0.551 053705440512 4 0855 0823 0792 0763 0735 0708 0683 0659 0636 0613 0592 09720552 0534 0516 0499 0482 04670451 0437 0423 0410 0.822 0784 0747 073 0681 0650 0621 0.593 0567 0543 0519 0497 0.476 0456 0437 041904020386 03700355 03410328 0790 0746 0705 0666 0630 0596 0.564 0535 0507 0480 0456 0432 04100390 0370 0352 0335 0.3190303 0289 0275 0262 0.750 0.711 0.665 0623 0.583 0547 0.513 0482 0452 0.425 04000376 0354 0333 0.31 0.296 0.279 0263 0249 0235 0222 0.210 0731 06770627 0582 0540 0502 0467 0.434 0404 0376 0351 0327 03050285 0.266 02490233 0218 0204 61910190168 0,703 0645 0592 0544 0500 0.460 0424 0.391 0361 0333 0308 0284 0263 0243 0225 0 209 0.19 01800167 0155 014 0134 067606140558 0508 0.463 0422 0386 0.352 0322 0295 0270 0247 0227 0208 0191 0176 0162 09901370126 0116 0107 0.650 0.585 0.527 0.475 0429 0388 03500317 0287 0261 0237 021501950178 016201480135012301120103 0094 0086 12 0625 0557 0497 0.444 0397 0.356 0319 0286 0257 0231 0.208 01870168 0.152 013701240112 0.1020092 0083 0.076 0069 13 0.601 0530 0.469 04150368 0.326 0.290 0.258 0229 0204 0182 0163 014501300116 01040093 0084 00750068 000055 14 05770505 0.442 0388 0,340 0299 0263 0232 0205 0181 01600110125 0099 008 0078 006900620055 0049 0044 15 0555 0481 0417 0362 0.3150215 0239 0209 0183 01600000123 008 0095 0.084 007 0065 0057 0051 0045 0000 0005 1 0534 0458 0394 0339 0292 0252 0218 019 0163 0141012301070093 0.081 0071 0.067 0054 0047 00420036 0032 0028 17 0510436 0371 031702700231 0198 01700146 0125 008 0093 000 0069 0060 0052 0045 0.039 004 0030 0026 0.023 1R 0494 04150350 0.296 0.250 0212 01800153 0130 0111 00950081 0069 0.059 0.051 0044 003 0032 0028 002400210018 19 0 475 0396 0331 0271 0232 0194 0164 0138 0116 009 0083 007000600051 0043 0037 00:31 000 002 0020 001 001 20 04960377 0312 0258 02150178 0149 0124 01040087 0073 006 005 0043 007 00, 0026 002200190000 002 21 04390359 0.294 0242 0199 0164 015 0117009000770054 0053 004 0037 0001 002 0022 00 00 00 001 0009 22 0422 0342 0278 0226 0184 01500123 01010083 006 0056 0016.003 0032 0025 0.022. 0018 001S00100110009 0007 0406 03260262 02110170 0130112 0091 0074 00600049 0040 001 0027 0022 00 01 000 000 000 000 000 24 0390 030 0247 0197 01580126 0102 002 0066 0053 000 00150078 0021 000 000 000 000 000 0007 2006 2005 0.75 0295 0223 01 016 01160092 0014 000 0047 00 00300024 000 000 000 000 000 000 000 000 000 20 0.361 071 0720_0120135010600440066 0053 004 003 0026 001 001 COM 0011 000 000 000 000 000 000 22 027 0268 0.207 0161 0125 000 0076 0000 0000170029 002 00 OM 000 000 0000 000 000 000 000 2 030255 00 1500116 0000 0000 0054 00420 002 0020 00 000 000 000 000 000 000 000 000 0321 020 01 02 010700220061 004 000 002 0022 000 002 001 000 000 000 0000 0000 0000 0000 0 030 0231 01101110099 007 0057 0044 003 0026 0020 01 000 000 000 000 000 000 000 000 000 000 40 020 01 0057 007 004600022 000 000 000 0004 0000 000 000 000 000 0000 0000 000000000 EXHIBIT 78-2 Present Value of an Annuity of St in Arrears: 1 7 B 9 811 11 Penods 4 5 69 8 9 10% 12 134 10 156 16 17 189 19 20 21 22 23 245 258 1 09620952 0943 09350926 0977 0909 0901 0.893 0889 0877 08700862 0855 0847 0.840 0833 0826 0820 083 0806 0800 2 1886 1859 1833 1808 1783 1759 1736 173 1690 1668 1647 1626 1605 158515661547 1528 1509 1492 1474 1457 1440 3 2.775 2723 2673 2624 2577 2531 2487 2444 2.402 2361 2322 2283 2246 2210 2.174 2.140 2106 2074 2042 2011 1981 1952 4 3.630 35463 465 3387 3312 3.240 3170 3102 3037 2974 2914 2855 2798 2743 2690 2639 2589 2540 2494 2448 2404 2362 5 4452 43294212 4.100 3.993 3890 391 3696 3605 3 517 3433 3352 3274 3199 31273058 2.991 29262864 2803 2745 2689 5 5242 50764917 4767 4623 4486 4355 4231 4111 3.9983889 3.7843685 35893498 3.410 3.326 3245 3167 309230202951 60025786 558253895206 5033 4868 4712 4564 4423 4288 4160 40393922 3812 37063605 3508 2415 3327 3242 3161 6.733 6.463 6210 5.921 5747 5.535 5335 5146 4.968 4799 4639 4487 4344 4207 40783954 3837 3.726 3619 3518 3421 3329 7435 7108 6 802 6515 6.2475995 5759 5537 5328 5132 4946 4772 4607 4451 4303 4163 4031 3.905 3.786 3673 1566 3463 10 7722 7360 7024 6710 6 418 6145 5889 5650 5426 5216 5019 4833 4659 4494 433941924054 3923 799 3682 3571 876083067887 7499 7139 6 805 6495 6 207 5938 5687 5 453 5234 502948364656 4486 4327 4177 4035 3902 37763656 12 9385 8.863 8384 7943 7536 7161 6814 6492 6194 59185660 54215197 4988 47934611 443942784127 3985 38513725 13 9.386 9394 8853 8358 7904 7487 7103 6750 5424 61225842 5583 5342 518 4910 47154533 4362 4203 405339123780 14 10563 9899929587458244 7786 73676.982 5628 6 302 6.002 5724 5.468 5229 5008 4802 4611 4432 4265 4108 3962 3824 15 11119 10380 9712 9108 8.559 8,061 7606 7191 6811 6462 6142 5847 5575 5324 509248764675 4 489 43154150 4001 3859 16 11652 10 838 0.106 9447 8851 833 7824 7379 6974 6604 62655954 5.668 5.405 51624938 47304536 4357 41894033 3887 17 12.166 11274 10 471 9.763 9122 8544 8022_7549 2120 6729 6373 6047 5749 5475 5222 4990 4775 4.576 4391 4219 4059 1950 18 12.659 11690 10828 10.059 9372 8756 8201 2702 725068406 467 512 581855345273501348124608 4419 424340803928 Y 13134208511158 10336 9.6048950 836578397366 6938 655061985877 5584 5316 5070 4843 4635 442 426240973942 20 13 590 12.462 1470 90594 9818 9129 8.514 796374697025 6623 6.259 5929 5.628 5353 5101 420 4657 446042794110 3954 21 14029 12821T1754 10836 10097 9292 8649 8075 75627102 6687 6312 5973 5665 5384 512748914675 4476 4292 4121 1963 22 14451 13163 12.042 11061 10 201 942 8772_8176 7645 7170 673 6359 6 011 5696 5410 51494909 4600 448 4302 4803970 23 14857 13:49 12303 11 272 10.371 9580 8883 8266 2718 7230 6792 6 399 6044 5723 5032 5 167 4925 4703 4499 4311 37 3.975 24 15 247 13.799 2.550 11469 10.5299707 8985 8348 7784 7283 6835 5.434 60735745 545151249374713 507 438 439987 25 15622 MOM 12.783 11654 10675082390778422784 7330.6.87364646097 5.766 5467 5195 948 472145544323 47 7985 26 15983 14375 13003 11826 0 810 9929 9161 848378967372 6.906 6.491 6118 5780 5.480 5.20049564728 4520 4328 4157 27 16.330 643 13211119871099510027 9277 548 79437409 695 654 613657985492 5 215 490 4734 4524 433241543990 28 15563898 1.406 12.137 11051 0.18 9.307 3502 7047441 6.961 6534 5152 5810 5502 52234970 47194528 439541573992 20 16.98415141 591 278 11158 1198 9370 R650 8022 74705983 6551 6166 5820 5510 5229 475 473 4531 43374159 799 30 17.2925372 13765 12 409 11 258 102140427 8694 805574967003 6.566 51775821 55175235 49794 M 454 4.119 160 195 10 1979275 1504 1332 11925 1075707798951 8244 704 705 642 621 575 58 5258 1997 NO 456 447 4166199