What is the projects equivalent annual cost or eac


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. If the required return is 12%, what is the projects equivalent annual cost or EAC?

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Finance Basics: What is the projects equivalent annual cost or eac
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