Vandezande Inc. is considering the acquisition of a new machine that costs $458,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are (Ignore income taxes.):

Incremental Net Operating Income Incremental Net Cash Flows

Year 1 $66,000 $150,000

Year 2 $72,000 $152,000

Year 3 $83,000 $165,000

Year 4 $46,000 $148,000

Year 5 $88,000 $150,000

Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period of this investment is closest to: