(Ignore income taxes in this problem.) Baldock Inc. is considering the acquisition of a new machine that costs $420,000 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	$61,000	$145,000
Year 2	$67,000	$151,000
Year 3	$78,000	$162,000
Year 4	$41,000	$125,000
Year 5	$83,000	$167,000

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

2.8 years

3.2 years

1.9 years