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The Ziggy Trim and Cut Company can purchase equipment on sale for $ 4 , 3 0 0 . The asset has a three -

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?
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