(Ignore income taxes in this problem.) Baldock Inc. is considering the acquisition of a new machine that costs $464,000 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	$72,000	$153,000
Year 2	$78,000	$157,000
Year 3	$89,000	$178,000
Year 4	$52,000	$154,000
Year 5	$94,000	$156,000

Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period of this investment is closest to:

2.1 years

5.0 years

4.1 years

2.9 years