A 9-year project has an initial fixed asset investment of


Question: A 9-year project has an initial fixed asset investment of $43,680, an initial NWC investment of $4,160, and an annual OCF of -$66,560. The fixed asset is fully depreciated over the life of the project and has no salvage value.

Required: If the required return is 19 percent, what is the project's equivalent annual cost, or EAC? (Do not round your intermediate calculations.)

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Finance Basics: A 9-year project has an initial fixed asset investment of
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