A five-year project has an initial fixed asset investment of $225,000, an initial NWC investment of $20,000,
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A five-year project has an initial fixed asset investment of $225,000, an initial NWC investment of $20,000, and an annual OCF of –$25,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 15 percent, what is this project’s equivalent annual cost, or EAC?
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Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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