Essay
The Walker Landscaping Company can purchase a piece of equipment for $3,600. The asset has a two-year life,and 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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