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Olinick Corporation is considering a project that would require an investment of $338,000 and would last for 8 years. The incremental annual revenues and expenses

Olinick Corporation is considering a project that would require an investment of $338,000 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 $ 269,000
Variable expenses 20,000
Contribution margin 249,000
Fixed expenses:
Salaries 28,000
Rents 41,000
Depreciation 36,000
Total fixed expenses 105,000
Net operating income $ 144,000

The scrap value of the project's assets at the end of the project would be $18,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:

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