Please help solve question 2 (Ch. 7 HW). Thank you.

2. The Elberta Fruit Fate 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 chemnes to fall onto plastic tarps that funnel the cherries into bins. Ms. Wright has gathered the following information to decide whether a chetty 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 Exhibit 78.1 and Exhibit78_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 of Elberta Fruit Farm's required rate of return is 87 3a Compute the payback period on the cherry picket 35. The Eberta 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 wietnal 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 20 RAJA 30 Ped 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 36. 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 2A Reg 26 Reg 3A Reg 35 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 cash operating costs Reg 2A > 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, 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 2A Reg 28 ReG JA Reg 30 Reg Reg 40 Compute the simple rate of return expected from the cherry picker. (Round your percentage answer to 2 decimal places) Simple rate of 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. 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 Red 2A Reg 25 Reg 3 Reg 30 Reg 4 Reg 4 Compute the payback period on the cherry picker. (Round your answer to 2 decimal places.) Panteck porod yan 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 Frut 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 Rog 20 Reg A Rog Reg Reg 40 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; 14 16% 5 5 8 9 10 11 Periods 5 6 7 89 99 10% 11% 12 13 15% 17 18% 19 20% 27% 22 23 24% 258 1 0.962 0 952 0943 0935 0926 0917 0909 0.901 0893 0885 0877 0870 0.862 0855 0.847 08400833 0826 08200.813 0.806 0800 2 0.925 0.907 0.890 0.873 08570842 0826 0.812 0797 0783 0769 0756 0713 0.731 0.7180705 0694 0683 0672 0661 0650 0640 3 0889 0.864 08400816 0794 072 071 0731 07120693 0675 0658 0.641 0624 060905930579 0564 0.551 0537 054 0512 4 0855 0823 0792 0763 0.735 0708 0683 0659 06360613 0592 09720552 0534 0516 0499 0482 04670451 0437 0423 0410 0822 0784 0747 073 0681 0650 0621 0.593 0567 0543 0519 0497 0.476 0.456 0437 04190.4020386 03700355 0.3410328 0790 0.746 0705 0666 0630 0596 0.564 0535 0 507 0480 0.456 0432 04100390 0370 0352 0335 0.319 03030289 0275 0262 0760 0711 0665 0623 0.583 0547 0.513 0482 0.452 0425 0400 0376 0354 0333 0.31 0.296 0279 0263 0.249 0235 0.272 0.210 0731 06770627 0582 05400502 04670434 0404 0376 0351 0327 03050285 0266 0249 0233 0218 0204 0191 01790168 07030645 0592 0544 05000460 0424 0.391 0361 0333 03080284 0263 0243 0225 0 209 0.19401800167 0155 024 0134 0 576 064 0558 0508 0.463 0.422 0386 0.352 0322 0295 0270 0247 0227 0.208 0.191 0176 0162 0949 01370126 01160107 0.650 0.585 0.527 0.475 0429 0388 03500317 0287 0 261 0237 021501950178 0162 018 0135012301120103 0094 0056 12 0625 0557 0.49704440397 0.356 0319 0286 0257 0231 0208 01870168 0.152 033701240112 01020092 0083 0.076 0069 13 0.001 0530 0469 0.4150368 0.326 0.290 0.258 0229 0204 0182 0163 014501300116 010 0093 0084 00750068 067 0055 14 0577 0505 0442 0388 0,340 0299 0263 0232 0205 0181 01600441 0125 0111 0099 ORA 0078 006900620055 0049 00:44 15 0555 0481 04170357 03150275 0239 0209 0183 01600140012301080095 0084 0074 0065 0057 005 0045 004 0035 054 0458 0.394 0339 0292 0.252 02180189 01630141 01230107 0093 0081 0071 0002 0054 004 004200360022 0028 17 0500436 0371 03170270 0231 0198 0170 016 0125 000 000 000 0069 0060 0052 0005 0039 00 0030 0026 0.023 18 0494 0415 0350 0.296 0.250 0212 01800153 01300111 00950081 0069 0059 0.051 0044 003 0022 0028 002 002 001 0475 0396 0231 0277 0232 0194 0164 01380116 009 0083 007000600051 0043 0037 0.0.31 0027 0023 0.020.001 0010 20 0456 037 0312 0258 02150178 0149 0124 0904 087 0073 0061 0051 0043 0037 003 0026 002 001900M OOM 001 21 04390359 0.294 0242 01990166 005 0112 009 0077 0064 003 0044 002 003 0026 0.022 001 Doon on 0009 22 0422 0342 02780226 0184 015001230501 00830068 0056 0016 003 0032 00250022 0010010010010009 0.007 0406 0.3260.262 02110170 013 0,11200910074 0060 0049 0040 0033 0027 0022 00 00:15 000 000 000 000 000 24 0390 03100247 0197 0158 01260102 002 006 0053 004 005 0078 0.021 000 0015 000 000 000 0007 0006 25 0.375 0295 0233 00146 0116 0092 001 0059 0047 008 000 0024 0020 001 0011 000 000 000 000 0005 0.004 20 0.361 0281 0720_0120135010600440066 0053 0042 003 0026 001 001 COM 0011 000 000 000 000 000 000 27 0347 0268 0.207 0961 0125 000 0075000000700X7 0029 002 00 OM 000 000 000 000 000 000 000 28 033 0255 00 1500116 0000 0000 0054 0042 000 002 0020 00 000 000 000 000 000 0004 0.00 0.00 0.00 01 024) OSM 0107 OORZ 006 004 000 0070022 001 002 001 000 000 000 0000 0000 000 000 000 030 0231 01101110099 007 0057 004 003 0020002000000 0000 000 000 000 000 000 000 000 000 40 0200120057 007 004600022001 01100 0005 004 000 000 000 000 000 0000 0000 0000 0000 000 EXHIBIT 78-2 Present Value of an Annalty of 51 in Anaar: [ Periods 9 11 154 1 18 208 21 22 23 24 25 09620952 0943 09350926 0917 090909010893 085 0877 0870082 085 084 0800 083 0826 0220083 0806 0800 2 1886 1859 1833 1803 1783 1759 1736 10 1690 1668 1667 1676 16051585 156 157 158 1509 1492 1474 1657 1410 2775 2723 2673 2624 2.57 2531 2.687 2004 2002 2361 2322 2283 2286 2210 2110 2500 206 2074 2012 2011 1981 1952 2630, 3546 3465 3782 3312 3200 3170302 3037 2976 2916 28552796 27417690 2639 2589 2500 2494 248 24042362 5 4452 4329 8212 4.60039833890 3791 3696 3605 3517 3433 3352 3274 3199 3122 3058 2991 2926 2864 2803 2745 269 6 5.2425016 4917 4.762 4623 6186 4355 4231 411 39983889 3784 1685 389 398 3410 325 3205 13673092 3020 2951 2 60025786 552 53895 205 50334858 472 4564 4423 424 4250 4039 3922 3812 3706365 3508 346 327 322 3161 673360636210 5971570) 5535 5335 516 496 499 4639 46 3644207 407 356 387 372636353221239 785 7108 6802 651562475995 5759 5537 5728 512 4906 672 46074451 302 413 40312905378536733566 3.063 8111 7722 7360 2074 670 6145 5889 5650 5426 525 5099 4833 4659 449443094192 05 29773799362 351 11 8760 3067887 74957139 68056.495 6 207 5938 5687 5453 5234 5679 48354656 4454327 477 40353902 376 3656 12 938538638384 790 75367368 685 62 59945918566054275 49746114494278 2798536513775 13 5869398853 8358 79017487 703 67505424 6122 5842 553 5342 518 4910475 4533 436 4203 6053 1902 370 14 10563 98993255 105 8247786 23676526628 6.302 6002 5724 568 52295.00% 402 461144265 0790224 7118 53809712 910 2593 8061 76062091 68116662 61258025575 534 5022 4876 4675448931545 of 3899 116520838101069647 88518.30 78262379 6974 5601 625 5556 568 5552938 470 45 4357 413900 18 12 166 112740412 973 9022 854 8022 7519 21206720 5.113 604 579S4552229907754578 219 405910 25591169030228 1053937287568201 702 7250606 667 512 555 52735033 42 419 420 LORO 19 13114 VOS11158 0305 5601 8950 8365789 2.366 697865506198 5877 5580 55 5070 488 465 426 4097 3502 20 590 216211470 SM 9878 8514 73 74 70256 624 5925 568 5650 465 4804279410 954 21 4029 12.1 117547835 100179792649 075 752 702 581 631) 593 5.665 5 3 51274 4575 4282 01193 1451 033 2002 2001 2009012 28167615710147650 SM 4300 4300 1970 23 4857 1359 2.303 11272103719283 26 27 720622575504572582597523012112295 20 1520 1250 11.50 307 95 274 7205R15 603 607357055651 91 0 4 507 318 3581 25 15672 MOSE 2.73 165467539077802780) 7300 66.54 SONT 5 546 515 9671 54327 398 153 15 0100) 1260977 767725.90 657 SS 20.9564724520 22 25 27 350 M21 905 022 9231 256 290 76036905 651 60575497575 150 THAN 1051 1 37077987065145152552 5223 905 35 ) 1992 OSE 11912271201589370 650 74706551 5295515229094 23 172 NS00129 36 OSS 745 700 60661758295 SET 525 49792534 35 ins 1500695757979 244 7066555245816