Tyson Inc. is considering a project of replacing its old press machine with a new model. Due to the availability of the new model, the market value of the old model has just dropped from $100,000 a year ago to $60,000 now. The new model has a price of $300,000 and would reduce operating expenses by $80,000 per year over the next five years. Due to its complexity, the installation cost of the new model is $25,000 while the same cost of the old model was only $5,000. The salvage value of the new model after five years is estimated to be $120,000, while the old model will be worth only $10,000 by then. The new model will allow the company to reduce its inventories by $20,000. Because the new model can share real-time data with the firm's the suppliers, it will increase accounts payable by $10,000. The changes in inventories and accounts payable will be restored to its original level at the end of the project. The firm's tax rate is 35% and the cost of capital is 12%. The allowed depreciation rate for tax purposes is 30% for press machines.

What is the Payback Period of this project assuming cash flows occur uniformly throughout the year?