Scarborough Oil & Gas is considering an investment in Amarillo. Given the following information, calculate the payback period (in months). Should Scarborough invest in Amarillo if management requires a payback period of less than 36 months?

Acquisition cost of Amarillo	$45,000
Drilling cost of one well	$400,000
Estimated completion cost	$500,000
Estimated selling price per bbl	$70
Estimated lifting cost per bbl	$30
State severance tax	6%
Royalty interest	10%
Estimated monthly production	1500 bbls per month

Payback period (in months, rounded to two decimal places):

Based on payback, should Scarborough invest in Amarillo? (yes or no):