Houis Inc. is considering the acquisition of a new machine that costs $300,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are:

Incremental net operating income Incremental net cash flows

Year 1 46,000 106,000

Year 231,000 97,000

Year 3 50,000110,000

Year 4 48,000 108,000

Year 5 35,00095,000

The payback period of this investment is closest to:

	2.1 years
	2.9 years
	1.8 years
	5.0 years (this one is wrong, i know that atleast) I need to know how this is calculated??????????