A company is considering a project with the following characteristics:

Cash outflows:

• Immediate investment in equipment: $464,000
• Cash outflow for equipment maintenance in year 2: $55,000

Cash inflows:

• Cash savings in year 1: $50,000
• Cash savings in year 2: $100,000
• Cash savings in year 3: $100,000
• Cash savings in year 4: $150,000
• Cash savings in year 5: $200,000
• Salvage value at the end of year 5: $60,000

What is the Payback Period (in years) for this project? (Round your answer to 2 decimal places.)

(Use the present values tables below for any present value calculations. Don't round intermediate calculations. Round your final answer to the nearest dollar.)

Present Value of $1 received in n periods.
Periods	6%	7%	8%	9%	10%	11%	12%	13%	14%
1	0.943	0.935	0.926	0.917	0.909	0.901	0.893	0.885	0.877
2	0.890	0.873	0.857	0.842	0.826	0.812	0.797	0.783	0.769
3	0.840	0.816	0.794	0.772	0.751	0.731	0.712	0.693	0.675
4	0.792	0.763	0.735	0.708	0.683	0.659	0.636	0.613	0.592
5	0.747	0.713	0.681	0.650	0.621	0.593	0.567	0.543	0.519
6	0.705	0.666	0.630	0.596	0.564	0.535	0.507	0.480	0.456
7	0.665	0.623	0.583	0.547	0.513	0.482	0.452	0.425	0.400
8	0.627	0.582	0.540	0.502	0.467	0.434	0.404	0.376	0.351
Present Value of an ordinary annuity of $1 received at the end of the period for n periods.
Periods	6%	7%	8%	9%	10%	11%	12%	13%	14%
1	0.943	0.935	0.926	0.917	0.909	0.901	0.893	0.885	0.877
2	1.833	1.808	1.783	1.759	1.736	1.712	1.690	1.668	1.647
3	2.673	2.624	2.577	2.531	2.487	2.444	2.402	2.361	2.322
4	3.465	3.387	3.312	3.240	3.170	3.102	3.037	2.974	2.914
5	4.212	4.100	3.993	3.890	3.791	3.696	3.605	3.517	3.433
6	4.917	4.767	4.623	4.486	4.355	4.231	4.111	3.998	3.889
7	5.582	5.389	5.206	5.033	4.868	4.712	4.564	4.423	4.288
8	6.210	5.971	5.747	5.535	5.335	5.146	4.968	4.799	4.639