A project with a life of 5 has an initial fixed asset investment of $24,360, an initial

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A project with a life of 5 has an initial fixed asset investment of $24,360, an initial NWC investment of $2,320, and an annual OCF of –$37,120. The fixed asset is fully depreciated over the life of the project and has no salvage value.

If the required return is 8 percent, what is the project's equivalent annual cost, or EAC?

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Fundamentals of corporate finance

ISBN: 978-0073382395

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Posted Date: Mar 07, 2024 11:36 PM

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A project with a life of 5 has an initial fixed asset investment of $24,360, an initial

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To calculate the projects equivalent annual cost EAC we need to find the annuity that has the sam... View the full answer

Fundamentals of corporate finance

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