The Bramble Company is planning to purchase $597,650 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.

Year		Projected Cash Flows
1			$256,200
2			151,300
3			118,400
4			61,500
5			61,500
6			41,600
7			41,600
Total			$732,100

(a) Calculate the payback period for the proposed equipment purchase. Assume that all cash flows occur evenly throughout the year.

Payback period

enter a number of years years and enter a number of months months.

(b) If Bramble requires a payback period of 4 years or less, should the company make this investment?

The company select an option should notshould make this investment.