Essay
The Walker Landscaping Company can purchase a piece of equipment for £3,600.The asset has a two-year life, will produce a cash flow of £600 in the first year and £4,200 in the second year.The interest rate is 15%.Calculate the project's payback assuming steady cash flows.Also calculate the project's IRR.Should the project be taken? Check your answer by computing the project's NPV.
Correct Answer:
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Payback = 1.714 year...View Answer
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Correct Answer:
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