Problema 6-year project has an initial fixed asset, Ask an Expert

Finance

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.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162692

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