What is the decision criteria for Payback Period (PBP) method?

A construction company is considering the purchase of a new piece of equipment. Relevant information concerning the equipment follows:

Cost of the equipment $220,000

Annual cost savings from new equipment $44,000

Life of the new equipment 10 years

Compute the payback period for the equipment. If the company requires a payback period of five years or less, would the equipment be purchased?