(Ignore income taxes in this problem.) Alesi Corporation is considering purchasing a machine that would cost $907,280 and have a useful life of 15 years. The machine would reduce cash operating costs by $103,100 per year. The machine would have a salvage value of $107,320 at the end of the project. (Assume the company uses straight-line depreciation.)
Required:
a. Compute the payback period for the machine. (Round your answer to 2 decimal places.)
b. Compute the simple rate of return for the machine. (Round your intermediate answers to the nearest whole dollar and your final answer to 2 decimal places.)

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.