(Ignore income taxes in this problem.) Baldock Inc. is considering the acquisition of a new machine that costs $423,000 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	$64,000	$149,000
Year 2	$70,000	$150,000
Year 3	$81,000	$178,000
Year 4	$44,000	$146,000
Year 5	$86,000	$148,000

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

The payback period of this investment is closest to:

5.0 years

2.7 years

4.3 years

2.1 years