Problem:
A five-year project has an initial fixed asset investment of $345,000, an initial NWC investment of $37,000, and an annual OCF of -$36,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent,
Required:
Question: What is this project's equivalent annual cost, or EAC?
Note: Please show how you came up with the solution.