(Ignore income taxes in this problem.) Neighbors Corporation is considering a project that would require an investment of $369,000 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	$255,000
Variable expenses	25,000
Contribution margin	230,000
Fixed expenses:
Salaries	43,000
Rents	56,000
Depreciation	51,000
Total fixed expenses	150,000
Net operating income	$80,000

The scrap value of the project's assets at the end of the project would be $33,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:

2.8 years

4.6 years

3.5 years

2.7 years