A company is considering a project with a cost of $1,260,000 and a 7-year life. There would be no salvage value at the end of 7 years. Annual net operating income (ignoring taxes) would be as shown in the below table:

Sales	$2,000,000
Variable expenses	$1,350,000
Contribution margin	$650,000
Fixed Cash expenses	$300,000
Depreciation	$180,000
Net operating income	$170,000

The company's required rate of return is 11%.

Given the above details

a) What is the project's payback period?

b) What is the project's simple rate of return?