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A piece of labor-saving equipment has just come onto the morket that Mitsui Electronics, Limited,...

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Accounting

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A piece of labor-saving equipment has just come onto the morket that Mitsui Electronics, Limited, could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow. Required: 1a. Compute the payback period for the equipment. 16. If the company requires a payback period of four years or less, would the equipment be purchased? 2a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's usefut life. 2b. Would the equipment be purchased if the company's required rate of return is 13% ? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Compute the payback period for the equipment. (Round your answer to 1 decimal place.) Compute the simple rate of return on the equipment. Use straight-iline depreciation based on the equipment's useful tife. (Round your answer to 1 declmal place i.e, 0.123 should be considered as 12.3%.)

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