A company is planning to purchase a machine that will cost $35,000, have a seven-year life, and be depreciated using the straight-line method with no salvage value. The company expects to sell the machine's output of 4,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below:

Sales		$119,000
Costs:
Manufacturing	$68,000
Depreciation on Machine	5,000
Selling and Administrative Expenses,	40,000	(113,000)
Income before taxes		$6,000
Income tax (50%)		($3,000)
Net income		$3,000

What is the payback period for this machine?