Takhini Hot Springs 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: $63,000 Increased revenues Increased expenses: $20,000 9,000 12,000 Salary of additional operator Supplies Depreciation 45,000 $18,000 4,000 Maintenance Increased net income Required 1) What is the payback period on the new equipment? 2) What is the simple rate of return on the new equipment