Due to increased demand, the management of Aaron Baking Company is considering purchasing a new equipment to increase the production and revenues. The useful life of the equipment is 10 years and the company's maximum desired payback period is 5 years. The inflow and outflow of cash associated with the new equipment is given below: Initial cost of equipment: $36794 Annual cash inflows: Sales: $78724 Annual cash Outflows: Cost of ingredients: $45783 Salaries expenses: $14307 Maintenance expenses: $1309 Compute the payback period of the new equipment. Answer: Should Aaron Baking Company purchase the new equipment? Select one: a. No O b. Yes