The Makro Zoom and Zico Company can purchase equipment on sale for 4,300. The asset has a

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The Makro Zoom and Zico 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?

Posted Date: May 18, 2024 12:15 PM

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