(Ignore income taxes in this problem.) The Zinger Corporation is considering an investment that has the following data:

	Year 1	Year 2	Year 3	Year 4	Year 5
Investment	$15,000	$4,400
Cash inflow	$3,400	$3,400	$8,000	$5,400	$5,400

Cash inflows occur evenly throughout the year. The payback period for this investment is: (Round your answer to 1 decimal place)

3.9 years

4 years

4.9 years

3 years

(Ignore income taxes in this problem.) Baldock Inc. is considering the acquisition of a new machine that costs $435,000 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	$76,000	$155,000
Year 2	$82,000	$161,000
Year 3	$93,000	$175,000
Year 4	$56,000	$158,000
Year 5	$98,000	$160,000

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

The payback period of this investment is closest to:

4.3 years

5.0 years

2.2 years

2.7 years