Falcon Crest Aces $($FCA$),$ Incorporated, is considering the purchase of a small plane to use in its wing$-$walking demonstrations and aerial tour business. Various information about the proposed investment follows:

Initial investment

Useful life

$$120,000$

$10$ years

$$10,000$

$$3,000$

$8\%$

Salvage value

Annual net income generated

FCA's cost of capital

$8\%$

Assume straight line depreciation method is used.

Help FCA evaluate this project by calculating each of the following:

Required:

$2.$ Payback period.

Note: Round vour answer to $2$ decimal places.