In this example, what does F01 and F02 represent?

12:15 PM Thu Feb 25 100% m AA A coursehero.com + G Google Cedars-Sinai -... Kronos WORK... Your Shopping... Linkedin G capio dds - Go... Finance Flashc... x FINA5311_Ch1... Add to Library Example 8 . . . A five-year project has an initial fixed asset investment of $400,000, an initial NWC investment of $35,000, and an annual OCF of More -$34,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 10 perce Minimum 10 characters are required. what is this project's equivalent annual cost, or EAC? Solution Search for a subject. Time 1 2 3 4 5 Get answer Initial investment -400,000 0 Answers in as fast as 15 minutes ANWC -35,000 35,000 By continuing, you agree to our Privacy Policy, Terms of Use, and Honor Code OCF -34,000 -34,000 -34,000 -34,000 -34,000 Total project cash flows or -435,000 -34,000 -34,000 -34,000 -34,000 1,000 terminal cash flows a) Compute the NPV of all known CFs CFO=-435,000 C01=-34,000 F01=4 C02=1,000 F02=1 NPV I=10, NPV CPT, NPV=-542,154.5039 b) Find the PMT (-EAC) of an annuity with a PV of -542, 154.5039, 5 years and an I/Y=10 Report PV=-542,154.5039, N=5, I/Y=10, FV=0, CPT PMT, PMT=143,018.9923 => EAC=-PMT=-143,018.9923 Company Get Course Hero Careers Help Legal Connect with Us About Us iOS Leadership Contact Us Copyright Policy College Life Scholarships Android Careers FAQ Academic Integrity Facebook