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Munoz Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used airplanes. The first airplane is

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Munoz 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 $17,490,000; it will enable the company to increase its annual cash inflow by $5,300,000 per year. The plane is expected to have a useful life of five years and no salvage value. The second plane costs $41,000,000; it will enable the company to increase annual cash flow by $8.200.000 per year. This plane has an eight-year useful hife and a zero salvage value, Required o1. Determine the payback period for each investment alternative. o2. Identify the alternative Munoz should accept if the decision is based on the payback approach. Note: Round your answers to 1 decimal place

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