Stuart 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 $17,980,000; it will enable the company to increase its annual cash inflow by $5,800,000 per year. The plane is expected to have a useful life of five years and no salvage value. The second plane costs $37,200,000; it will enable the company to increase annual cash flow by $9,300,000 per year. This plane has an eight-year useful life and a zero salvage value.

Required

a1. Determine the payback period for each investment alternative.

a2. Identify the alternative Stuart should accept if the decision is based on the payback approach.

Note: Round your answers to 1 decimal place.