Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return

Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $700,000. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow:

Year	Cash Revenues	Cash Expenses
1	$1,500,000	$1,000,000
2	1,500,000	1,000,000
3	1,500,000	1,000,000
4	1,500,000	1,000,000
5	1,500,000	1,000,000

Required:

Compute the payback period for the NC equipment. Round your answer to one decimal place. Payback period = years