Free Printable Bir... Design Collection Saved iz - Chapter 13 6 Colchester Company is considering purchasing a new piece of equipment. Relevant information concerning the equipment follows: (lgnore income taxes,) $252,000 Purchase cost Annual cost savings that will be provided by the equipment Life of the equipment $42,000 15 years Required: 1-a. Compute the payback period for the equipment. (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 equipment be purchased? No O Yes