A 9-year project has an initial fixed asset investment of $38,640, an initial NWC investment of $3,680, and an annual OCF of -$58,880. The fixed asset is fully depreciated over the life of the project and has no salvage value.
Required: If the required return is 18 percent, what is the project's equivalent annual cost, or EAC? (Do not round your intermediate calculations.)
Which is the correct answer:
$-71,948.24
$-65,096.03
$-58,243.82
$-68,522.14
$-32,761.36