Calculate equivalent annual cost


Question: A twelve year project has an initial fixed asset investment of $168,000 an initial NWC investment of 16,000 dollars & an annual OCF of -25,600 dollars. The fixed asset is fully depreciated over the life of the project and has no salvage value. If required return is fifteen percent, the project's equivalent annual cost, or EAC, is $__. [Negative amount should be indicated by a minus sign. Give your answer to two decimal places]

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Finance Basics: Calculate equivalent annual cost
Reference No:- TGS017209

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