Sun Coast Tours is considering purchasing a new boat for use in its tour business. Relevant Information concerning the boat is as follows: (Ignore income taxes.) Required: 1-a. Compute the payback perlod for the boat. (Round your answer to 1 decimal place.) Answer is complete and correct. 1-b. If the company rejects all proposals with a payback period of more than five years, will the boat be purchased? Yes No 2-a. Compute the simple rate of return on the boat. Use straight-IIne depreciation based on the boat's useful IIfe, assuming $13,800 salvage value. (Round your answer to 1 decimal place.) X Answer is complete but not entirely correct. 2-b. Will the boat be purchased If the company's required rate of return is 10% ? Yes No