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Required Assuming that the project will yield exactly a 12% rate of return, what is the expected net cash inflow for Year 3 EXERCISE 13-13 Payback period and Simple Rate of Return Computations 1013-1103-6 A piece of labor saving equipment has just come to the market that Mitsui Electronics, Lad..could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: Purchase cost of the equipment $432.000 Annual cost savings that will be provided by the equipment... 590.000 Ule of the equipment 12 years Capital Budgeting Decisions 663 1. What is the payback period for the equipment? If the company requires a payback period of four years or less would the equipment be purchased! 2. What is the simple rate of return on the equipment? Use straight-line depreciation based on the equipment's useful life. Would the equipment be purchased if the company's required rate of return is 1407 EXERCISE 13-14 Comparison of Projects Using Net Present Value 013-2 Labeau Products, LM of Perth, Australia, has 535,000 to invest. The company is trying to decide twenties the funds