Problem:
A 6-year project has an initial fixed asset investment of $36,540, an initial NWC investment of $3,480, and an annual OCF of -$55,680. The fixed asset is fully depreciated over the life of the project and has no salvage value.
Required:
Question: If the required return is 10 percent, what is the project's equivalent annual cost, or EAC?
Note: Please show how you came up with the solution.