The Short-Line Railroad is considering a $145,000 investment in either of two companies. The cash flows are as follows:

Year	Electric Co.			Water Works
1	$	90,000		$	25,000
2		25,000			30,000
3		30,000			90,000
4 10		15,000			15,000

a. Compute the payback period for both companies. (Round your answers to 1 decimal place.)

Electric Co.		years
Water Works		years

b. Which of the investments is superior from the information provided?

	Water Works
	Electric Co.