Adams Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two dif

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Adams Airline Company is considering expanding its territory.
The company has the opportunity to purchase one of two different
used airplanes. The first airplane is expected to cost $24,790,000;
it will enable the company to increase its annual cash inflow by
$6,700,000 per year. The plane is expected to have a useful life of
five years and no salvage value. The second plane costs
$34,000,000; it will enable the company to increase annual cash
flow by $8,500,000 per year. This plane has an eight-year useful
life and a zero salvage value.
Required
Determine the payback period for each investment alternative and
identify the alternative Adams should accept if the decision is
based on the payback approach. (Round your answers to
1 decimal place.)