Wellington Company is studying a project that would have a ten-year life and would require an $1,700,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project:

Sales		$950,000
Less cash variable expenses		167,000
Contribution margin		783,000
Less fixed expenses:
Fixed cash expenses	$380,000
Depreciation expenses	116,000	496,000
Net operating income		$287,000

The company's required rate of return is 8%. What is the payback period for this project? (Round your answer to two decimal places.)

3.15 years

2.17 years

4.22 years

5.92 years