A 9-year project has an initial fixed asset investment of $11,760, an initial NWC investment of $1,120, and an annual OCF of -$17,920. The fixed asset is fully depreciated over the life of the project and has no salvage value.
Required:
If the required return is 11 percent, what is the project's equivalent annual cost, or EAC?
A -20,167.08
B -17,142.01
C. -21,175.43
D -19,158.72
E -12,407.34