What is this projects equialent annual cost


A five-year project has an initial fixed asset invstment of $270,000, an initial NWC investment of $25,000, and an annual OCF of -$42,000. The fixed asset is fuly depreciated over the life of the project and has no salvage value. If the required return is 11 percent, what is this project's equialent annual cost, or EAC?

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Accounting Basics: What is this projects equialent annual cost
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