Capilano Inc. has an old machine that is fully depreciated but has a current salvage value of $6,000. The company wants to purchase a new machine that would cost $60,000 and have a five-year useful life and zero salvage value. Expected changes in annual revenues and expenses if the new machine is purchased are: $60,000 $20,000 Increased revenues Increased expenses: Salary of additional operator Supplies Depreciation Maintenance Increased net income 9,000 12,000 4,000 45,000 $18,000 Required: 1. What is the payback period on the new equipment? 2. What is the simple rate of return on the new equipment