Harrison Corporation is studying a project that would have an eight-year life and would require a $300,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project:

Sales		$500,000
Less cash variable expenses		200,000
Contribution margin		300,000
Less fixed expenses:
Fixed cash expenses	$150,000
Depreciation expenses	37,500	187,500
Net operating income		$112,500

The company's required rate of return is 10%. The payback period for this project is closest to: