The Pina Colada Company is planning to purchase $529,300 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 1 2 3 4 Projected Cash Flows $184,500 151,500 106,500 74,400 74,400 45,500 45,500 $682,300 5 6 7 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. (b) If Pina Colada requires a payback period of 4 years or less, should the company make this investment? The company make this investment. should should not