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Exercise 9-16 The Concord Company is planning to purchase $506,800 of equipment with an estimated...

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Exercise 9-16 The Concord Company is planning to purchase $506,800 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. Projected Cash Flows $207,000 157,000 112,000 52,800 52,800 37,000 37,000 $655,600 Total (a) Calculate the payback period for the proposed equipment purchase. Assume that all cash flows occur evenly throughout the year Payback period (b) If Concord requires a payback period of three years or less, should the company make this investment? years and months. The company make this investment

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