A company with $660,000 in operating assets is considering the purchase of a machine that costs $76,000 and which is expected to reduce operating costs by $22,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)

Multiple Choice

3.5 years

8.7 years

0.29 years

30 years