A five-year project has an initial fixed asset investment


A five-year project has an initial fixed asset investment of $360,000, an initial NWC investment of $40,000, and an annual OCF of −$39,000. 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.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A five-year project has an initial fixed asset investment
Reference No:- TGS01164030

Expected delivery within 24 Hours