TT Insert T Text Table Chart Shape Media Comment The Elberta Fruit Farm of Ontario always has hired transient workers to pick its annualcherty crop. Janessa Wright, the farm manager just received information on a cherry picking machine that is being purchased by many frut farms. The machine is a motorced device that shakes the therrytree, causing the chemes to follontoplastic 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 Eiberta Hut Farm a. Currently, the form is paying an average of 5190.000 per year to transient workers to pick the chemies b The cherry picker would cost $510,000 it would be depreciated using the right-line method and would have no salvage at the end of its 10-year useful life Annual out of pocket couts antociated with the cherry picker would be cost of an operator and an aestant, 502,000,nsurance, $1000: fuel. 59.000, and a maintenance contract. $12000 Click here to view Extabat.130.1 and Ext. 138-2. to determine the appropriate scount 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 Elberta Fruit Farm's required rate of return is 817 3a Compute the payback period on the cherry picker 36. The Elberta Frun Farm will not purchase equipment unless it has a payback period of nine years or less Would the cherry pideer be purchased? 4a Compute the internal rate of return promised by the cherry picker, 45. 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. Rea 1 Red 20 Hea Red Req -40 Determine the annual savings in cash operating costs that would be realized the cherry picker were purchased Reg 2 > Complete this question by entering your answers in the tabs below. Red 3A Res 4 Reg 40 Reg 2 Reg 28 Req30 Compute the simple rate of return expected from the cherry picker (round your percentage ane te 2 decimal placer) Complete this question by entering your answers in the tabs below. la 1 Red 2A M40 RAG 26 Red Reg 0 Reg Would the cherry picker be purchasedir Eberta Fruit Farm's required rate of return is 7 Yos ONG 14 words