Problem:
A five-year project has an initial fixed asset investment of $295,000, an initial NWC investment of $27,000, and an annual OCF of $26,000. The fixed asset is fully depreciated over the life of the project and has no salvage value.
Required:
Question: If the required return is 12 percent, what is this project's equivalent annual cost, or EAC?
Note: Please provide through step by step calculations.