Olinick Corporation is considering a project that would require an investment of $379,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows (Ignore income taxes.):

Sales	$	240,000
Variable expenses		27,000
Contribution margin		213,000
Fixed expenses:
Salaries		45,000
Rents		58,000
Depreciation		53,000
Total fixed expenses		156,000
Net operating income	$	57,000

The scrap value of the project's assets at the end of the project would be $35,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:

Multiple Choice

6.6 years

3.4 years

4.6 years

3.3 years