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A five year project has an initial fixed asset investment of $315000 an initial NWC investment of $31000 and an annual OCF of $30000 The fixed asset is fully depreciated over the life of the

A five-year project has an initial fixed asset investment of $315,000, an initial NWC investment of $31,000, and an annual OCF of -$30,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent, 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.)

 

Apr 06 2020 View more View Less

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