Question: one question. please show work A five-year project has an initial fixed asset investment of $350,000, an initial networking capital (NWC) investment of $40,000, and
A five-year project has an initial fixed asset investment of $350,000, an initial networking capital (NWC) investment of $40,000, and an annual operating cash flow (OCF) of -$23,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. The initial investment in NWC will be recovered at the end of the project. If the required return is 12 percent, what is this project's equivalent annual cost, or EAC? 124,893 136,356 128,625 133,655 113,445
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