Problem:
A five year project has an initial fixed asset investment of $360,000, an initial NWC investment of $40,000, and an annual OFC of -39,000. 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%, what is the projects equivalent annual cost or EAC?
Note: Please show the work not just the answer.