9.The Ayayai Company is planning to purchase $525,000 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
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Total $650,000(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 Ayayai requires a payback period of 4 years or less, should the company make this investment?The company select an option should or should not make this investment.