The Bridgeport Company is planning to purchase $501,400 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 Flows $205,000 155,500 110,500 45,600 45,600 38,500 38,500 $639,200 Year 4 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