(Ignore income taxes in this problem.) Rogers Company is studying a project that would have a ten-year life and would require an $2,000,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project:

Sales		$1,100,000
Less cash variable expenses		190,000
Contribution margin		910,000
Less fixed expenses:
Fixed cash expenses	$440,000
Depreciation expenses	128,000	568,000
Net operating income		$342,000

The company's required rate of return is 8%. What is the payback period for this project? (Round your answer to two decimal places.)

4.26 years

3.17 years

2.20 years

5.85 years