Question

A 10-year project has an initial fixed asset investment of $38,640, an initial NWC investment of $3,680, and an annual OCF of -$58,880. The fixed asset is fully depreciated over the life of the project and has no salvage value.

Required:
If the required return is 8 percent, what is the project's equivalent annual cost, or EAC? (Do not round your intermediate calculations.)



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  • CreatedAugust 05, 2013
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