Exercise 10-13A (Algo) Determining the payback period with uneven cash flows LO 10-4 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 Year 1 Nature of Iten Cash Inflow Cash Outflow 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 Year 5 Revenue 15,000 Salvage value 7,000 Required a.&b. Determine the payback period using the accumulated and average cash flows approaches. (Round your answers to 1 decimal place.) a. Payback period (accumulated cash flows) b. Payback period (average cash flows) years years