Question: This question is worth 6 marks Please show any formulos that you are using and calculations, Company TMZ wants to purchase a piece of equipment

This question is worth 6 marks Please show any formulos that you are using and calculations, Company TMZ wants to purchase a piece of equipment for $3600. It has a 3 year life and will produce cash outflows of $1,000 in year 1, $2,000 in year 2 and $3,500 in year 3. Assuming a discount rate of 12% what is the discounted payback and the profitability Index

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