Vandezande Inc. is considering the acquisition of a new machine that costs $438,000 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	$	79,000		$	154,000
Year 2	$	85,000		$	164,000
Year 3	$	96,000		$	175,000
Year 4	$	59,000		$	161,000
Year 5	$	101,000		$	163,000

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

The payback period of this investment is closest to: (Round your answer to 1 decimal place.)

Multiple Choice

• 2.2 years

• 5.0 years

• 4.3 years

• 2.7 years