Al Inc. plans to add a new product line. The project requires an initial investment of $285,000, has an expected useful life of 9 years, and has an expected terminal value of $15,000. The project is expected to generate the following annual revenues and expenses:

Cash revenues

Cash operating expenses

Depreciation expense

Annual incremental net operating income

$170,000

(108,000)

(30,000)

$32,000

What is the payback period of this project in years? Round to one decimal point.

O 4.6 years

4.4 years

O 8.4 years

O 8.9 years

O None of the above