estimated salvage value

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

1                            $200,000

2                        150,000

3                           100,000

4                           60,000

5                          60,000

6                     40,000

7                   40,000

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.