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 $200,000 per year to transient workers to pick the cherries b. The cherry picker would cost $250.000. 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 Annual out of pocket costs associated with the cherry picker would be cost of an operator and an assistant, $98.000; insurance, $5,000, fuel, $15,000 and a maintenance contract, $20,000 Click here to view Exhibit 14B1 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 25 Would the cherry picker be purchased if Eberta Fruit Farm's required rate of return is 18%? 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 five years or lesk 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? 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 18%? 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 five years or less would the cherry picker be 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 Req 2B Reg Reg 3B Reg 4 Reg 4 Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased. Annual savings in cash operating costs I Req2A > 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 18%? 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 five 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 38 Req 4A Reg AB Compute the simple rate of return expected from the cherry picker. (Round your answer to 2 decimal placet.) Simple rate of return 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 18%? 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 five 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 2A Reg 3A Reg 1 Reg 28 Reg 3B Reg 4 Reg 48 would the cherry picker be purchased if Elberta Fruit Farm's required rate of return is 18%? Yes ONO Required: 1. Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased Za 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 18%? 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 five 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 3A Reg 38 Reg 4 Reg 48 Compute the payback period on the cherry picker. (Round your answer to 2 decimal places.) Payback period YOD 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 25. Would the cherry picker be purchased if Elberta Fruit Farm's required rate of return is 18%? 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 five 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 3A Reg 30 Reg 4 Red 40 The Elberta Fruit Farm will not purchase equipment unless it has a payback period of five years or less. Would the cherry picker be purchased? OYes ON 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 18%? 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 five 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 Req 28 Rea Reg 3B Reg 4 Reg 48 Compute the internal rate of return promised by the cherry picker. (Round your answer to the nearest whole percent.) Internal rate of return