Fanning 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. Fanning 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		$84,000
Year 1	Revenue	$32,500
Year 2	Revenue	32,500
Year 3	Revenue	27,500
Year 3	Major overhaul		8,500
Year 4	Revenue	18,500
Year 5	Revenue	16,500
Year 5	Salvage value	7,300

Required

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

Note: Round your answers to 1 decimal place.