Palmer Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income of $$194,000.$ The equipment will have an initial cost of $$432,000$ and a $8$ year useful life. If the salvage value of the equipment is estimated to be $$78,000,$ what is the payback period?

Multiple Choice

$2\mathrm{.}98$ years

$2\mathrm{.}23$ years

$1\mathrm{.}81$ years

$8\mathrm{.}00$ years