D2L Dropb( X D2L Grade: X D2L Homer X D2L Homer X D2L Homer X Questi X G (Apper X G Mark C X G Plan & X Cours X Cours( X Cours( X Home X + C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddle... ( * Update : Post Class Quiz - Chapter 13 i Saved Help Save & Exit Submit 19 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 $231, 000 Annual net cash inflows that will be provided by the boat $ 55, 000 Life of the boat 10 years Required: 1-a. Compute the payback period for the boat. (Round your answer to 1 decimal place.) Payback period year ( s ) 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 $13,800 salvage value. (Round your answer to 1 decimal place.) Simple rate of return 1% Mc Graw HillD2L Dropb( X D2L Grades X D2L Homer X D2L Homer X D2L Homer X Questi X G (Apper X G Mark C X G Plan & X Cours( X Cours( X Course X Home X + C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddle.. 1 Update : Post Class Quiz - Chapter 13 i Saved Help Save & Exit Submit Life or the boat 10 years 19 Required: 1-a. Compute the payback period for the boat. (Round your answer to 1 decimal place.) Payback period year(s) 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 $13,800 salvage value. (Round your answer to 1 decimal place.) Simple rate of return % 2-b. Will the boat be purchased if the company's required rate of return is 10%? Yes O No Mc Graw HillD2L Dropb( X D2L Grade: X D2L Homer X D2L Homer X D2L Homer X Questi X G (Appel X G Mark C X G Plan & X Cours X Cours( X Course X Home X + C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddle.. ( * Update : Post Class Quiz - Chapter 13 i Saved Help Save & Exit Submit 20 The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow $58 , 000 $ 4, 000 $ 8, 000 $ 8, 000 $11, 000 $14, 000 $17, 000 $15 , 000 $13, 000 $11, 000 $10 , 000 $10, 000 Required: Ignore income taxes. 1. Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period years 2. Would the payback period be affected if the cash inflow in the last year was several times as large? O Yes O No Mc Graw Hill