Seved Help Save & Exit Submit so Check my work The Elberta Fruit Farm of Ontario has always 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 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 $290,000 per year to transient workers to pick the cherries. b. The cherry picker would cost $680,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 10-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $84,000: Insurance, $3,000; fuel, $11,000; 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 20%? 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 four years or less. Would the cherry picker be purchased? 4. 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. Proy 1 of 6 Next > 6 points 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 20%? 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 four years or less. Would the cherry 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? 8 04:31:12 ebook Complete this question by entering your answers in the tabs below. Hint Print Reg 1 Reg 2A Reg 28 Reg Reg 3B Reg 4 Req 48 References Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased. Annuat savings in cash operating costs RE Req 2A> Me Graw HILI Prey 1 of 6 3 Next > 1 Check 6 points Required: 1. Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased 20. 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 20%? 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 four years or less. Would the cherry pic 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? 04:30 Book Complete this question by entering your answers in the tabs below. Hint Print Reg 1 Reg 2A Reg 28 Rea Reg 3B References Reg 4 Req 48 Compute the simple rate of return expected from the cherry picker. (Round your answer to 2 decimal places.) Simple min of return % araw ill Prey 1 of 6 Next > 1 6 points Required: 1. Determine the annual savings in cash operating costs that would be realized if the cherry picker were purch 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 20%? 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 four years or less. W 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 Investmer 04:30:57 eBook Complete this question by entering your answers in the tabs below. Print References Reg 1 Reg 2A Reg 28 Reg Reg 38 Reg 4A Req 4B Would the cherry picker be purchased If Elberta Fruit Farm's required rate of return is 20%7 10Yes O No Mc Graw HILL Prey 1 of 6 !!! Next > 6 points 1. Determine the annual savings in cash operating costs that would be realized if the cherry picker were purcha 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 20%? 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 four years or less. Wow 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 8 04:30:51 eBook Complete this question by entering your answers in the tabs below. Hint Print Reg 1 Req ZA Reg 2B Pleq 3A Reg 38 References Req 4A Reg 43 Compute the payback period on the cherry picker. (Round your answer to 2 decimal places.) Payback period years ic Eraw Prey 1 of 6 Next > TO Help Save It 1 Check 6 points 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 20%? 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 four years or less. Would the cherry pich 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? 04:30:43 Book Complete this question by entering your answers in the tabs below. Hint Print Reg 1 References Reg 2A Req 28 Req 3A Reg 38 Reg 4 Reg 48 The Elberta Fruit Farm will not purchase equipment unless it has a payback period of four years or less. Would the cherry picker be purchased? OYes No IMC Graw HILI Prey 1 of 6 Next > 6 points 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 20%? 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 four years or less. Would 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 dec 8 04:30:35 eBook Complete this question by entering your answers in the tabs below. Hint Print Reg 1 References Reg 2A Reg 28 Reg Reg 38 Reg 4A Reg 4B Compute the internal rate of return promised by the cherry picker. (Round your answer to the nearest whole percent.) Internal rate of retum % Mc Graw Hill CH 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 20%? 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 four years or less. Would the cher 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? 28 Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Req 28 Req Reg 38 Req 4A Regs Based on this computation, does it appear that the simple rate of return is an accurate guide in Investment decisions? Yes O No Seved Help Save & Exit Submit so Check my work The Elberta Fruit Farm of Ontario has always 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 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 $290,000 per year to transient workers to pick the cherries. b. The cherry picker would cost $680,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 10-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $84,000: Insurance, $3,000; fuel, $11,000; 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 20%? 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 four years or less. Would the cherry picker be purchased? 4. 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. Proy 1 of 6 Next > 6 points 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 20%? 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 four years or less. Would the cherry 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? 8 04:31:12 ebook Complete this question by entering your answers in the tabs below. Hint Print Reg 1 Reg 2A Reg 28 Reg Reg 3B Reg 4 Req 48 References Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased. Annuat savings in cash operating costs RE Req 2A> Me Graw HILI Prey 1 of 6 3 Next > 1 Check 6 points Required: 1. Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased 20. 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 20%? 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 four years or less. Would the cherry pic 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? 04:30 Book Complete this question by entering your answers in the tabs below. Hint Print Reg 1 Reg 2A Reg 28 Rea Reg 3B References Reg 4 Req 48 Compute the simple rate of return expected from the cherry picker. (Round your answer to 2 decimal places.) Simple min of return % araw ill Prey 1 of 6 Next > 1 6 points Required: 1. Determine the annual savings in cash operating costs that would be realized if the cherry picker were purch 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 20%? 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 four years or less. W 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 Investmer 04:30:57 eBook Complete this question by entering your answers in the tabs below. Print References Reg 1 Reg 2A Reg 28 Reg Reg 38 Reg 4A Req 4B Would the cherry picker be purchased If Elberta Fruit Farm's required rate of return is 20%7 10Yes O No Mc Graw HILL Prey 1 of 6 !!! Next > 6 points 1. Determine the annual savings in cash operating costs that would be realized if the cherry picker were purcha 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 20%? 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 four years or less. Wow 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 8 04:30:51 eBook Complete this question by entering your answers in the tabs below. Hint Print Reg 1 Req ZA Reg 2B Pleq 3A Reg 38 References Req 4A Reg 43 Compute the payback period on the cherry picker. (Round your answer to 2 decimal places.) Payback period years ic Eraw Prey 1 of 6 Next > TO Help Save It 1 Check 6 points 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 20%? 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 four years or less. Would the cherry pich 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? 04:30:43 Book Complete this question by entering your answers in the tabs below. Hint Print Reg 1 References Reg 2A Req 28 Req 3A Reg 38 Reg 4 Reg 48 The Elberta Fruit Farm will not purchase equipment unless it has a payback period of four years or less. Would the cherry picker be purchased? OYes No IMC Graw HILI Prey 1 of 6 Next > 6 points 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 20%? 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 four years or less. Would 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 dec 8 04:30:35 eBook Complete this question by entering your answers in the tabs below. Hint Print Reg 1 References Reg 2A Reg 28 Reg Reg 38 Reg 4A Reg 4B Compute the internal rate of return promised by the cherry picker. (Round your answer to the nearest whole percent.) Internal rate of retum % Mc Graw Hill CH 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 20%? 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 four years or less. Would the cher 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? 28 Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Req 28 Req Reg 38 Req 4A Regs Based on this computation, does it appear that the simple rate of return is an accurate guide in Investment decisions? Yes O No