A13 A B D E G H 1 2 3456IN 1 Ramson Corporation is considering purchasing a machine that would cost $645,750 and have a useful life of 10 years. The machine would reduce cash operating costs by $86,100 per year. The machine would have a salvage value of $107,150 at the end of the project. (Ignore income taxes.) 3 Required: a. Compute the payback period for the machine. (Round your answer to 2 decimal places.) (3 marks) 7 89 Payback period 10 b. Compute the simple rate of return for the machine. (Round your intermediate calculations to nearest whole dollar and 11 your final answer to 2 decimal places.) (7 marks) 12 13 14 15 6 7 Simple rate of return