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 AMachine B

Cost$90,000$82,000

Useful Life5 years5 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 years0.567

Dollar received at the end of each of the 5 years3.605

Compute the payback period for each of the alternatives. Round answers to two decimal places.