The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry croporation Janessa Wright, the farm manager, just received information on a cherry picking machine that is being purchased by many fruit forms. 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 $210,000 per year to transient workers to pick the cherries. b. The cherry picker would cost $550,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 8-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $95,000, insurance, $4,000; fuel, $12,000, and a maintenance contract, $15,000 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 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 seven years or less. Would the cherry picker be purchased? 4. Compute the internal rate of return promised by the cherry picker. 46. 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 20 Reg 3A Req 38 Reg 4A Req 40 Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased Annual savings in cash operating costs ULUI HUVI yeu CIMI. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $95,000; insurance, $4,000; fuel, $12,000; and a maintenance contract, $15,000 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 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 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 3A Reg 1 Reg 2A Reg 28 Reg 38 Reg 4 Req 4B Compute the simple rate of return expected from the cherry picker. (Round your answer to 2 decimal places.) Simple rate of retur % UMILI CUIUSCIU. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $95,000; insurance, $4,000; fuel. $12,000, and a maintenance contract, $15,000. 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. 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 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 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 38 Req 4B Reg 2A Reg 28 Reg 3A Req 4A Would the cherry picker be purchased If Elberta Fruit Farm's required rate of return is 9%? OYO ONO UMUL TEU UCH c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $95,000; insurance, $4,000; fuel, $12,000; and a maintenance contract, $15,000, 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 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 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. Req 4B Reg 1 Reg 2A Reg 28 Red Reg 38 Reg 4A Compute the payback period on the cherry picker. (Round your answer to 2 decimal places) Payback period years UMUHIMU c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $95,000; insurance, $4,000; fuel, $12,000; and a maintenance contract, $15,000 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 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 seven years or less. Would the cherry picker be purchased? 4. Compute the internal rate of return promised by the cherry picker. 46. 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 4B Reg 1 Reg 2A Reg 28 Reg 3A Reg 38 Req 4A 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? Yos ONO UM CUIUI. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $95,000; insuranc $4,000; fuel, $12,000; and a maintenance contract, $15,000. 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 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 seven years or less. Would the cherry pick 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 3A Reg 4A Reg 1 Req 2A Reg 28 Reg 38 Req 48 Compute the internal rate of return promised by the cherry picker. (Round your answer to the nearest whole percent.) Internal rate of retum % Law your USUI. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $95.000; insurance, $4,000; fuel, $12,000; and a maintenance contract, $15,000 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. 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 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 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 Req 2A Reg 28 Reg 3A Reg 3B Reg 4 Rpg 48 Based on this computation, does it appear that the simple rate of return is an accurate guide in investment decisions? Yes ONO ( Req 4A ROGA