The Sunset Boulevard Straw Company specializes in decorative straw baskets. Currently, the company is analyzing purchase alternatives for an automated machine. Data relevant to the decision are as follows:

Machine A Machine B

Cost $90,000 $82,000

Useful Life 5 years 5 years

Residual life $2,000 $3,000

Estimated annual

Net Cash Flows $35,000 $30,000

The Present Value Multipliers at 12% are given:

Dollar received at the end of 5 years 0.567

Dollar received at the end of each of the 5 years 3.605

Compute the payback period for each of the alternatives. Round answers to two decimal places. [ 6 ] points