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Solomon Arline Company is considering expanding its territory. The compony has the opportunity to purchase one of two different used airplanes. The first airplane is

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Solomon Arline Company is considering expanding its territory. The compony has the opportunity to purchase one of two different used airplanes. The first airplane is expected to cost $24,790,000, it will enabie the company to increase its annual cash inflow by $6,700,000 per year. The plane is expected to have a useful life of five years and no salvage value. The second plane costs $34,560,000 : it will enable the company to increase annual cash flow by $9,600,000 per year. This plane has an eight-year useful life and a zero salvoge value. Required at. Determine the payback penod for each irvestment aiternative. a2. Identify the altemative Solomon should accept if the decision is based on the poyback approach. Note: Round your answers to 1 decimal place

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