Olinick Corporation is considering a project that would require an investment of $$304,000$ and would last for $8$ years. The incremental annual revenues and expenses generated by the project during those $8$ years would be as follows $($Ignore income taxes.$)$:

Sales $ $220,000$

Variable expenses $23,000$

Contribution margin $197,000$

Fixed expenses:

Salaries $30,000$

Rents $43,000$

Depreciation $38,000$

Total fixed expenses $111,000$

Net operating income $ $86,000$

The scrap value of the project's assets at the end of the project would be $$20,000.$ The cash inflows occur evenly throughout the year. The payback period of the project is closest to: $($Round your answer to $1$ decimal place.$)$

Multiple Choice

$2\mathrm{.}5$ years

$3\mathrm{.}5$ years

$3\mathrm{.}0$ years

$2\mathrm{.}2$ years