Answer:
3.7 years and 3.6 years
Explanation:
The formula to compute the payback period is shown below:
= Initial investment ÷ Net cash flow
So, for the first airplane, the payback period is
= $24,420,000 ÷ $6,600,000
= 3.7 years
And for the second airplane, the payback period is
= $33,480,000 ÷ $9,300,000
= 3.6 years
We simply divided the initial investment by the net cash flow so that the payback period could come