The Marigold Company is planning to purchase $577,000 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			$214,000
2			169,500
3			124,500
4			55,200
5			55,200
6			48,500
7			48,500
Total			$715,400

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