Pfizer Inc., the worlds largest research-based pharmaceutical company, is considering the acquisition of a new machine that costs $350,200 and has a useful life of 6 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.	$46,000	$106,000
Year 2	$31,000	$91,000
Year 3	$50,000	$110,000
Year 4	$48.000	$108,000
Year 5	$35,000	$95,000
Year 6	$30,000	$74,000

The payback period of this investment is closest to:

4.8 years

3.4 years

2.5 years

2.9 years