Hi, please help with the red marked part. Please provide the detailed solution of how you get this answer. Thank you!

Required information Use the following information for the Quick Study below. The following information applies to the questions displayed below. Project A requires a $305,000 initial investment for new machinery with a five-year life and a salvage value of $41,500 The company uses straight-line depreciation. Project A is expected to yield annual net income of $21,200 per year for the next five years. QS 25-5 Payback period LO P1 Compute Project A's payback period. Answer is complete but not entirely correct. Payback Period Choose Numerator: Payback Period Annual net cash flowPayback period Choose Denominator: Cost of investment 31,500 O- 305,000S 9 68