Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / A five year project has an initial fixed asset investment of $355000 an initial NWC invest...

A five year project has an initial fixed asset investment of $355000 an initial NWC investment of $39000 and an annual OCF of $38000 The fixed asset is fully depreciated over the life of the

A five-year project has an initial fixed asset investment of $355,000, an initial NWC investment of $39,000, and an annual OCF of -$38,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 11 percent, what is this project’s equivalent annual cost, or EAC? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Equivalent annual cost $

 

Apr 06 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions