The Bridgeport Company is planning to purchase $528,000 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 $205,000 2 155,500 3 110,500 4 45,600 5 45,600 6 38,500 7 38,500 Total $639,200 (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 Bridgeport requires a payback period of 4 years or less, should the company make this investment? The company make this investment.