(Solution) - The Walker Landscaping Company can purchase a piece of equipment -(2025 Original AI-Free Solution)

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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. (Show all work)
a) Computation of the pay Back period
b) Computation of the IRR Using Excel Funtions to solve IRR
c) Computation of the Net Present Value