A company with $705,000 in operating assets is considering the purchase of a machine that costs $79,000 and which is expected to reduce operating costs by $25,000 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.):

• 28.2 years

• 3.2 years

• 8.9 years

• 0.32 years