Sun Coast Tours is considering purchasing a new boat for use in its tour business. Relevant information concerning the boat is as follows: (Ignore income taxes.) Purchase cost $205,000 Annual net cash inflows that will be provided by the boat $ 51,900 Life of the boat 10 years Required: 1-a. Compute the payback period for the boat. (Round your answer to 1 decimal place.) [ vy | 1-b. If the company rejects all proposals with a payback period of more than five years, will the boat be purchased? O Yes O No 2-a. Compute the simple rate of return on the boat. Use straight-line depreciation based on the boat's useful life, assuming $11,800 salvage value. (Round your answer to 1 decimal place.) I 2-b. Will the boat be purchased if the company's required rate of return is 14%?7? O Yes O No