Your team is proposing a re-engineering project that is expected to yield production efficiency savings over the next 4 years. Those estimated savings per year are: Year 1: 20,000 Year 2: 30,000 Year 3: 40,000 Year 4: 50,000 The project requires an initial spend of 75,000 in re-design costs, of which 5,000 has already been spent on creating the cost efficiency estimates. A further 10,000 per annum of servicing costs will be incurred, paid annually in advance, and not included in the estimated savings above. As of now, what is the payback period if proceeding with this re-engineering project? 2.5 years 3.25 years 3.4 years 3.5 years