A project with a life of 9 has an initial fixed asset investment of $26,880, an...
| A project with a life of 9 has an initial fixed asset investment of $26,880, an initial NWC investment of $2,560, and an annual OCF of –$40,960. The fixed asset is fully depreciated over the life of the project and has no salvage value. |
| If the required return is 15 percent, what is the project's
equivalent annual cost, or EAC? |
Multiple Choice
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$-49,326.22
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$-39,930.75
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$-46,977.35
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$-44,628.48
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$-24,906.26
Homework Answers
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A project with a life of 9 has an initial fixed asset
investment of $26,880, an...
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Saved Help Save A 11-year project has an initial fixed asset investment of $23,520, an initial NWC investment of $2,240, and an annual OCF of -$35,840. The fixed asset is fully depreciated over the life of the project and has no salvage value. Required: If the required return is 20 percent, what is the project's equivalent annual cost, or EAC? (Do not round your intermediate calculations.)
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A five-year project has an initial fixed asset investment of $280,000, an initial NWC investment of $24,000, and an annual OCF of -$23,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent, what is this project's equivalent annual cost, or EAC? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g.,...
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Equivalent Annual Cost
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