The Ayayal Company is planning to purchase $524,500 of equipment with an estimated seven-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment. Projected Cash Year Flows $201,000 151,000 101,000 78,000 78,000 41,000 41,000 $691,000 2 4 7 Total (a) Calculate the payback period for the proposed equipment purchase. Assume that all cash flows occur evenly throughout the year Payback period years and months (b) If Ayayal requires a payback perlod of three years or less, should the company make this investment? The company make this investment