A 5-year project has an initial fixed asset investment of


A 5-year project 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.

Required:

If the required return is 14 percent, what is the project's equivalent annual cost, or EAC?

 

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Finance Basics: A 5-year project has an initial fixed asset investment of
Reference No:- TGS0600914

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