The Concord Company is planning to purchase $542,000 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			$207,000
2			157,000
3			112,000
4			52,800
5			52,800
6			37,000
7			37,000
Total			$655,600

(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 Concord requires a payback period of 4 years or less, should the company make this investment?