Ferris Company has an old machine that is fully depreciated but has a current salvage value of $$5,000.$ The company wants to purchase a new machine that would cost $$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:

Increased revenues $$63,000$

Increased expenses:

Salary of additional operator $$20,000$

Supplies $9,000$

Depreciation $12,000$

Maintenance $4,00045,000$

Increased net income $$18,000$

$($Ignore income taxes in this problem.$)$

Required:

a$)$ What is the payback period on the new equipment?

b$)$ What is the simple rate of return on the new equipment?