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.

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The Answer of 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.

The Ziggy Trim and Cut Company Can Purchase Equipment on Sale