Alesi Corporation is considering purchasing a machine that would cost $457,050 and have a useful life of 7 years. The machine would reduce cash operating costs by $83,100 per year. The machine would have a salvage value of $107,120 at the end of the project. (Ignore income taxes.) Required: a. Compute the payback period for the machine.

b.	Compute the simple rate of return for the machine.