(Ignore income taxes in this problem.) Neighbors Corporation is considering a project that would require an investment of $279,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows:

Sales$224,000Variable expenses22,000Contribution margin202,000Fixed expenses:Salaries25,000Rents38,000Depreciation33,000Total fixed expenses96,000Net operating income$106,000

The scrap value of the project's assets at the end of the project would be $15,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:

1.9 years2.0 years2.5 years2.6 years