Thornton Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used aiplanes. The first airplane is expected to cost $18,360,000; it will enable the compary to increase its annuat cash intlow by $6.800.000 per year. The plane is expected to have a usefut life of five years and no salvage value. The second plone costs $34,020.000, it will enable the company to increase annual cash flow by $8.300.000 per yeac. This plane has an elght-year useful life and a rero salvage value. Required a. Determine the payback period for each investment altemotive and identify the alternstive Thomton should accept if the decision is based on the payback approach. (Round your answers to 1 decimat place.) payback period
a-1 alternative 1 (first palne) ________ alternative 2 (second plane) ________
a-2 thornton should accept ________