Rooney 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. Rooney 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 Item Cash Inflow Cash Outflow Purchase price $89,200 Year 1 Revenue Year 2 Revenue $36,500 36,500 Year 3 Revenue 25,500 Year 3 Major overhaul 9,300 Year 4 Revenue 22,500 Year 5 Year 5 Revenue 20,500 Salvage value 8,100 Required a.&b. Determine the payback period using the accumulated and average cash flows approaches. Note: Round your answers to 1 decimal place. a. Payback period (accumulated cash flows) b. Payback period (average cash flows) years years < Prev 11 of 11 Next >