The Ziggy Trim and Cut Company Can Purchase Equipment on Sale

question 39

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.

---

Definitions:

AB Designs

A basic type of research design that compares two groups, A and B, to assess the effect of an intervention or treatment.

Withdrawal Designs

Experimental designs in behavioral research where an intervention is removed to assess its effects on the subject's behavior.

Efficiency Evaluations

Assessments focused on examining how well an entity uses its resources to achieve goals with the least waste of time and effort.

Effectiveness Evaluations

Assessments that measure how well a program, project, or intervention achieves its intended outcomes and objectives.