The Walker Landscaping Company can purchase a piece of equipment for $3,600. The asset has a two-year life, will produce a cashflow of $600 in the first year and $4200 in the second year. The interest rate is 15%. Calculate the project's payback assuming steady cashflows. Also calculate the project's IRR. Should the project be taken? Check your answer by computing the project's NPV.

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The Answer of The Walker Landscaping Company can purchase a piece of equipment for $3,600. The asset has a two-year life, will produce a cashflow of $600 in the first year and $4200 in the second year. The interest rate is 15%. Calculate the project's payback assuming steady cashflows. Also calculate the project's IRR. Should the project be taken? Check your answer by computing the project's NPV.

The Walker Landscaping Company Can Purchase a Piece of Equipment