Brewer Company is considering purchasing a machine that would cost $387,430 and have a useful life of 6 years. The machine would reduce cash operating costs by $90,100 per year. The machine would have a salvage value of $107,190 at the end of the project. (Ignore income taxes.)

a.

Compute the payback period for the machine.

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