Baird Company has an opportunity to purchase a forklift to use in its heavy equipment rental business. The forklift would be leased on an annual basis during its first two years of operation. Thereafter, it would be leased to the general public on demand. Baird would sell it at the end of the fifth year of its useful life. The expected cash inflows and outflows follow:

Year	Nature of Item	Cash Inflow	Cash Outflow
Year 1	Purchase price		$79,800
Year 1	Revenue	$31,000
Year 2	Revenue	31,000
Year 3	Revenue	26,000
Year 3	Major overhaul		8,200
Year 4	Revenue	17,000
Year 5	Revenue	15,000
Year 5	Salvage value	7,000

Required

a.&b. Determine the payback period using the accumulated and average cash flows approaches.

Note: Round your answers to 1 decimal place.