Return to question 5 Exercise 16-13 Determining the payback period with uneven cash flows LO 16-4 Vernon 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. Vernon would sell it at the end of the fifth year of its useful life. The expected cash inflows and outflows follow Cash Inflow Cash Outflow $ 94,8ee Year 2018 2018 2019 2828 2020 2021 2022 2022 Nature of Item Purchase price Revenue Revenue Revenue Major overhaul Revenue Revenue Salvage value $ 38,500 38,50e 27,500 9,700 24,500 22,500 8,500 Required a.&b. Determine the payback period using the accumulated and average cash flows approaches. (Round your answers to 1 decimal place.) Answer is complete but not entirely correct. a. Payback period (accumulated cash flows) Payback period (average cash flows) 3.9 years 3.2 years b