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A five-year project has an initial fixed asset investment of $295,000, an initial NWC investment of $27,000, and an annual OCF of -$26,000 (negative 26K). The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent, what is this projects equivalent annual cost, or EAC?

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Accounting Basics, Accounting

Category:- Accounting Basics
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