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The Elberta Fruit Farm of Ontario always has hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, lust 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 $270,000 per year to transient workers to pick the cherries. b. The cherry picker would cost $660,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 10-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $82,000; insurance, $4,000; fuel, $14,000; and a maintenance contract, $12,000. 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 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 four 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 Req 3A Req3B Req 4A Reg 4B Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased. Annual savings in cash operating costs Req2A > 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 $270.000 per year to transient workers to pick the cherries. b. The cherry picker would cost $660,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 10-year useful life. c. Annual out-of-pocket costs associated with the cherry picker wou operator and an assistant, $82,000; Insurance, $4,000; fuel, $14,000, and a maintenance contract, $12,000. 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 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 four years or less. Would the cherry picker be purchased? 40. Compute the internal rate of return promised by the cherry picker. 4b. Based on this computation, does it appear th of return is an accurate guide in investment decisions? Complete this question by entering your ES Reg 1 Reg 2A Compute Simple rate of rotum 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 form is paying an average of $270,000 per year to transient workers to pick the cherries. b. The cherry picker would cost $660,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 10-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be: cost of an operator and an assistant, $82,000; Insurance, $4,000; fuel, $14,000, and a maintenance contract, $12,000. 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 187 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 four 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 Req 3A Reg 38 Reg 4A Req 48 Would the cherry picker be purchased If Elberta Fruit Farm's required rate of return is 18%? (Roq2 R eq 3A > 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 $270,000 per year to transient workers to pick the cherries. b. The cherry picker would cost $660,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 10-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be: cost of an operator and an assistant, $82,000, Insurance, $4,000, fuel, $14,000; and a maintenance contract, $12,000. 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 retum 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 four years or less. Would the cherry picker be purchased? 4. 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 Compute the payback period on the cherry picker. (Round your Payback period years ( Reg 28 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 $270,000 per year to transient workers to pick the cherries b. The cherry picker would cost $660,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 10-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be cost of an operator and an assistant, $82,000, Insurance, $4,000 fuel, $14,000, and a maintenance contract, $12,000. Click here to view Exhibit 138-1 and Exhibit 138 2. to determine the approp 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 3a. Compute the payback period on the cherry picker. 3b. The Elberta Fruit Farm will not purchase equipment unless it has a payback or less. Would the cherry picker be purchased? 4. Compute the internal rate of return promised by the 4b. Based on this computation, does it appear that the simpl stment decisions? Complete this question by entering your Reg 2A Reg 28 Reg SA The Elberta Fruit Farm will not purchase equipment unles picker be purchased? Req sa Req 4A > 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 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 $270,000 per year to transient workers to pick the cherries b. The cherry picker would cost $660,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 10-year useful life. c. Annual out-of-pocket costs associated with the cherry picker w of an operator and an assistant, $82,000; insurance, $4,000; fuel, $14.000; and a maintenance contract, $12,000. 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 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 3a. Compute the payback period on the cherry picker 3b. The Elberta Fruit Farm will not purchase equipment unless it has four years or less. Would the cherry picker be purchased? 4a. Compute the internal rate of return promised by the cherry pl 4b. Based on this computation, does it appear that the simple rate accurate guide in investment decisions? X Complete this question by entering your answers in Req 1 Req 2A Reg 28 Reg 3A 2 Compute the internal rate of return promised by the cherry picker. Internal rate of return

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