Essay
The Ziggy Trim and Cut Company can purchase equipment on sale for $4,300. The asset has a three-year life,will produce a cash flow of $1,200 in the first and second year,and $3,000 in the third year. The interest rate is 12%. Calculate the project's payback. 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 - 2.63 years.
IRR = 10...View Answer
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Correct Answer:
Verified
IRR = 10...
View Answer
Unlock this answer now
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