(Ignore income taxes in this problem.) Baldock Inc. is considering the acquisition of a new machine that costs $470,000 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	$78,000	$156,000
Year 2	$84,000	$163,000
Year 3	$95,000	$175,000
Year 4	$58,000	$160,000
Year 5	$100,000	$162,000

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

The payback period of this investment is closest to:

a. 2.1 years

b. 5.0 years

c. 4.1 years

d. 2.9 years

PLEASE SHOW ALL WORK