Olinick Corporation is considering a project that would require an investment of $334,000 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	$	230,000
Variable expenses		18,000
Contribution margin		212,000
Fixed expenses:
Salaries		36,000
Rents		49,000
Depreciation		44,000
Total fixed expenses		129,000
Net operating income	$	83,000

The scrap value of the project's assets at the end of the project would be $26,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:

Multiple Choice

2.6 years

4.0 years

2.5 years

3.1 years