Question: A project with a life of 4 has an initial fixed asset investment of $15,540, an initial NWC investment of $1,480, and an annual OCF

A project with a life of 4 has an initial fixed asset investment of $15,540, an initial NWC investment of $1,480, and an annual OCF of $23,680. The fixed asset is fully depreciated over the life of the project and has no salvage value.

If the required return is 9 percent, what is the project's equivalent annual cost, or EAC?

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