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 Discounted Payback and Proﬁtability Index assuming end of year cash ﬂows.Should the project be taken? If the Average Accounting Return was positive, how would this affect your decision?

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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 Discounted Payback and Proﬁtability Index assuming end of year cash ﬂows.Should the project be taken? If the Average Accounting Return was positive, how would this affect your decision?

The Ziggy Trim and Cut Company Can Purchase Equipment on Sale