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PLEASE HELP ASAP!!!! ANSWER THE FOLLOWING QUESTION WITH THE PICTURES ATTACHED!! I cannot seem to figure out how to solve for the correct answer, please
PLEASE HELP ASAP!!!!
The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just recelved 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 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 Frult Farm: a. Currently, the farm is paying an average of $230,000 per year to transient workers to pick the cherries. b. The cherry picker would cost $620,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 8 -year usefut life. c. Annual out-of-pocket costs associated with the cherry picker would be; cost of an operator and an as5istant, $90,000; insurance, $4,000, fuel, $16,000; and a maintenance contract, $14,000. Click here to view Exhibit 148-1 and Exhibit 148-2, 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 12% ? 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 six 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. Determine the annual savings in cash operating costs that would be realized if the cherry plicker were purchased. The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just recelved information on o cherry picking machine that is being purchased by many fruit farms. The machine is a motorized device 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: a. Currently, the farm is paying an average of $230,000 per year to transient workers to plick the cherries. b. The cherry picker would cost $620,000, It would be depreciated using the straight-line method and it would have no salvage value at the end of its 8 -year usefut life. c. Annual out-of-pocket costs associated with the cherry picker would be: cost of an operator and an assistant, $90.000; insurance, $4,000; fuel, $16,000; and a maintenance contract, $14,000. Click here to view and Exhibit 14B-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 12% ? 3a. Compute the payback period on the cherry pleker. 3b. The Elberta Fruit Farm will not purchase equipment unless it has a payback period of six 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. Compute the simple rate of return expected from the cherry picker. (Round your answer to 2 decimal places.) The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just recelved 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 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: a. Currently, the farm is paying an average of $230,000 per year to transient workers to pick the cherries. b. The cherry picker would cost $620,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 8 -year usefur life. c. Annual out-of-pocket costs associated with the cherry picker would be: cost of an operator and an assistant, $90,000; insurance, $4,000; fuel, $16,000; and a maintenance contract, $14,000. Click here to view Exhibit 148-1 and Exhibit 14B-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 12\%? 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 six 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 imvestment decisions? Complete this question by entering your answers in the tabs below. Compute the payback period on the cherry picker. (Round your answer to 2 decimal places.) The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager. just recelved 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 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: a. Currently, the farm is paying an average of $230,000 per year to transient workers to pick the cherries. b. The cherry picker would cost $620,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 8-year usefut life. c. Annual out-of-pocket costs associated with the cherry picker would be: cost of an operator and an assistant, $90,000; insurance, $4,000; fuel, \$16,000; and a maintenance contract, $14,000. Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor using tables. Required: 1. Determine the annual savings in cash operating costs that would be roalized 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 12% ? 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 six years or less. Would the cherry picker be purchased? 4a. Compute the internal rate of return promised by the cherry picket. 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. Compute the internal rate of return promised by the cherry picker. (Round your answer to the nearest whole percent.) Prrecel Valee or 51;(1+f)51 Present Value of an Anouly of 51 in Arrars f11n+r11 ANSWER THE FOLLOWING QUESTION WITH THE PICTURES ATTACHED!! I cannot seem to figure out how to solve for the correct answer, please do so and show work.
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