Computation of equivalent annual cash flows

Reference no: EM1311892

Computation of Equivalent Annual cash flows

Calculating EAC

A 12-year project has an initial fixed asset investment of $168,000 an initial NWC investment of $16,000 and an annual OCF of -$25,600. The fixed asset is fully depreciated over the life of the project and has no salvage value. If required return is 15 percent, the project's equivalent annual cost, or EAC, is $______. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places, e.g.32.16)

Reference no: EM1311892

Questions Cloud

What is the spring constant : A professor's office door is 0.90 wide, 2.00 high, 4.00 thick; has a mass of 30, and pivots on frictionless hinges. A "door closer" is attached to door and the top of the door frame. When the door is open and at rest, the door closer exerts the torqu..

Explaining parameter and statistics : Explain the terms parameter and statistics. Make sure the concepts of population and sample are included in the definitions.

Evaluate the unit cost of product x : If overhead is allocated on the basis of direct labor hours, compute the unit cost of Product X - Evaluate the unit cost of Product X under the ABC system. Comment briefly.

Describing externalities : What types of inefficiencies and/or externalities arise in each renewable resource case that interferes with sustainable and efficient management results?

Computation of equivalent annual cash flows : Computation of Equivalent Annual cash flows where Negative amount should be indicated by a minus sign

The effective spring constant stiffness constant : A potter's wheel having a radius 0.55m and a moment of inertia 12kg•m2 is rotating freely at 51 rev/min. The potter can stop the wheel in 7 s by pressing a wet rag against the rim and exerting a radially inward force of 67N. Find out the effectual co..

The expected rate of inflation : Elucidate how do your previous answers change in the special case where money demand does not depend on the expected rate of inflation

Price-to-earnings ratio : The Price-to-Earnings ratio (P/E) of a publicly listed profit-making company is defined as the ratio of the stock price of the company to the earnings per share.

Describe the inefficiency and externalities : Efficiency and sustainability are management goals with respect to renewable resources. As Field explains, biological and economic considerations are typically blended in determining the efficient allocation of these resources.

User Account

All Pages