Calculate the projects payback-irr and npv


Question: The Walker Landscaping Company can purchase equipment on sale for $3,200. The asset has a two-year life, will produce a cash flow of $800 in the first year, and $3,000 in the second year. The interest rate is 15%.

REQUIRED:

1) Assuming end of year cash flows, calculate the project's: a) the project's payback, b) IRR and c) NPV. 2) Should the project be undertaken? Why or why not?

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Finance Basics: Calculate the projects payback-irr and npv
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