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Zachary Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used airplanes. The first airplane

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Zachary 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 $22,110,000; it will enable the company to increase its annual cash inflow by $6,700,000 per year. The plane is expected to have a useful life of five years and no salvage value. The second plane costs $40,020,000; it will enable the company to increase annual cash flow by $8,700,000 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 Zachary should accept if the decision is based on the payback approach. Note: Round your answers to 1 decimal place. a-1. Alternative 1 (First plane) a-1. Alternative 2 (Second plane) a-2. Zachary should accept Payback Period years years

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