8.38 A Corporation is considering purchasing a machine that would cost $451,260 and have a useful life of 6 years. The machine would have a salvage value of $107,270 at the end of the project. The machine would reduce cash operating costs by $98,100 per year. (Ignore income taxes.) Required: a. Compute the payback period for the machine. (Round your answer to 2 decimal places.) b. Compute the simple rate of return for the machine. (Round your intermediate calculations to nearest whole dollar and your final answer to 2 decimal places.) a Payback period years b. Simple rate of return %