Question: Koala Bear INC: A 8-year project has an initial fixed asset investment of $42,840, an initial NWC investment of $4,080, and an annual OCF of

Koala Bear INC:

A 8-year project has an initial fixed asset investment of $42,840, an initial NWC investment of $4,080, and an annual OCF of -$65,280. The fixed asset is fully depreciated over the life of the project and has no salvage value.

Required:

If the required return is 11% , what is the project's equivalent annual cost, or EAC? **Do not round your calculations.**

Multiple Choice

A. $-47,636.06

B. $-74,053.51

C. $-62,945.49

D. $-70,350.84

E. $-77,756.19

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