Problem:
A five-year project has an initial fixed asset investment of $300,000, an initial NWC investment of $28,000, and an annual OCF of -$27,000. The fixed asset is fully depreciated over the life of the project and has no salvage value.
Required:
Question: If the required return is 11 percent, what is this project's equivalent annual cost, or EAC?
Note: Please provide full description.