12.

Global Justice Corporation (GJC) wants to purchase a new machine for $384,000. Management predicts that the machine can produce sales of $228,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labour, and factory overhead (excluding depreciation) totalling $76,000 per year. The firm uses straight-line depreciation with no residual value for all depreciable assets. GJC's combined income tax rate is 40%. Management requires a minimum after-tax rate of return of 10% on all investments.

What is the present value payback period, rounded to one-tenth of a year?