Brewer Company is considering purchasing a machine that would cost $510,510 and have a useful life of 8 years. The machine would reduce cash operating costs by $100,100 per year. The machine would have a salvage value of $107,290 at the end of the project. (Ignore income taxes.)

a. Compute the payback period for the machine. (In years)

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