(Ignore income taxes in this problem.) Flamio Corporation is considering a project that would require an initial investment of $210,000 and would last for 6 years. The incremental annual revenues and expenses for each of the 6 years would be as follows:

Sales $203,000

Variable expenses 45,000

Contribution margin 158,000

Fixed expenses:

Salaries $24,000

Rents 37,000

Depreciation 31,000

Total fixed expenses 92,000

Net operating income $66,000

At the end of the project, the scrap value of the project's assets would be $24,000. Required:

Determine the payback period of the project. Show your work!

PLease include the process.