Thornton Company has an opportunity to purchase a forklift to use in its heavy equipment rental business. The forklift would be leased on an annual basis during its first two years of operation. Thereafter, it would be leased to the general public on demand. Thornton would sell it at the end of the fifth year of its useful life. The expected cash inflows and outflows follow: Year Nature of Item Cash Inflow Cash Outflow Year 1 Purchase price $ 93,400 Year 1 Revenue $ 38,000 Year 2 Revenue 38,000 Year 3 Revenue 27,000 Year 3 Major overhaul 9,600 Year 4 Revenue 24,000 Year 5 Revenue 22,000 Year 5 Salvage value 8,400 Required a.&b. Determine the payback period using the accumulated and average cash flows approaches. (Round your answers to 1 decimal place.)

Year	Nature of Item	Cash Inflow				Cash Outflow
Year 1	Purchase price					$	93,400
Year 1	Revenue	$	38,000
Year 2	Revenue		38,000
Year 3	Revenue		27,000
Year 3	Major overhaul						9,600
Year 4	Revenue		24,000
Year 5	Revenue		22,000
Year 5	Salvage value		8,400

a.	Payback period (accumulated cash flows)		years
b.	Payback period (average cash flows)		years