The Elberta Fruit Farm of Ontario 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 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 $220,000 per year to transient workers to pick the cherries. b. The cherry picker would cost $570,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 6-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $83,000; Insurance, $2,000; fuel, $10,000; and a maintenance contract, $13,000 Click here to view Exhibit 138.1 and Exhibit 138-2. 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 9%? 30. 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 carry 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 decision Complete this question by entering your answers in the tabs below. Reg 1 Red 2A Reg 25 Reg 3A Reg 30 Reg 4 Reg 40 Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased. b. The cherry picker would cost $570,000. It would be depreciated using the straight-line method and it would have no s at the end of its 6-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $83,000 $2,000; fuel, $10,000; and a maintenance contract, $13,000. Click here to view Exhibit 138-1 and Exhibit 13B-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 9%? 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 che 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. Req 1 Reg 2A Reg 2B Req 3A Req 38 Req 4A Req 48 Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased. Annual savings in cash operating costs Req Req 2A > b. The cherry picker would cost $570,000. It would be depreciated using the straight-line method and it would have no salva at the end of its 6-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $83.000; insu $2,000; fuel, $10,000; and a maintenance contract. $13,000 Click here to view Exhibit 138-1 and Exhibit 13B-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 9%? 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 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 Req ZA Req 2B Reg 3A Req 3B Req 4A Req 48 Compute the simple rate of return expected from the cherry picker. (Round your percentage answer to 2 decimal places.) Simple rate of return % at the end of its 6-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be: cost of an operator and an assista $2,000; fuel, $10,000; and a maintenance contract, $13,000. Click here to view Exhibit 13B-1 and Exhibit 13B-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 pur 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 9%? 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. 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 investm Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req Req 3B Req 4A Req 4B Would the cherry picker be purchased if Elberta Fruit Farm's required rate of return is 9%? Yes O No $2,000; tuel, $10,000; and a maintenance contract, $13,000. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor using table Required: 1. Determine the annual savings in cash operating costs that would be realized if the cherry picker were p 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 9%? 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 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 investr Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req Req 3B Req 4A Req 4B Compute the payback period on the cherry picker. (Round your answer to 2 decimal places.) Payback period years b. The cherry picker would cost $570,000. It would be depreciated using the straight-line method and it would have no sal at the end of its 6-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $83,000; in $2,000; fuel. $10,000; and a maintenance contract, $13,000. Click here to view Exhibit 13B-1 and Exhibit 13B-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 9%? 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 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 decision Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Reg 3A Req 38 Req 4A Req 4B 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? (Ores O No at the end of its 6-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $8 $2,000; fuel, $10,000; and a maintenance contract, $13,000. Click here to view Exhibit 13B-1 and Exhibit 13B-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 purchase 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 9%? 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 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 de Complete this question by entering your answers in the tabs below. Req1 Req 2A Req 2B Req 3A Req 3B Req 4A VER Req 4B Compute the internal rate of return promised by the cherry picker. (Round your answer to the nearest whole percent. Internal rate of return % b. The cherry picker would cost $570,000. It would be depreciated using the straight-line method and it would have no se at the end of its 6-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $83.000; $2,000; fuel, $10,000; and a maintenance contract. $13,000. Click here to view Exhibit 13B-1 and Exhibit 13B-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 9%? 3a. Compute the payback period on the cherry picker. 3b. Elberta Fruit Farm will not purchase equipment unless it has a payback period of six years or less. Would the che 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. Req 2A Req 28 Reg 1 Req Req 3B Req 4A Req 48 Based on this computation, does it appear that the simple rate of return is an accurate guide in investment decisions? OYes ONO