Question - A 11-year project has an initial fixed asset investment of $19,320, an initial NWC investment of $1,840, and an annual OCF of -$29,440. The fixed asset is fully depreciated over the life of the project and has no salvage value.
Required: If the required return is 11 percent, what is the project's equivalent annual cost, or EAC?
$-31,117.49
$-18,481.46
$-27,841.97
$-32,755.26
$-34,393.02