A company is planning to purchase a machine that will cost $34,800, have a six-year life, and be depreciated over a three-year period with no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the payback period for this machine?

Sales		$144,000
Cost:
Manufacturing	$53,800
Depreciation on machine	5,800
Selling and administrative expenses	48,000	(107,600)
Income before taxes		$36,400
Income tax (40%)		(14,560)
Net income		$21,840