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 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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