Depreciated over life of project and has no salvage value

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Reference no: EM13730342

A 9-year project has an initial fixed asset investment of $44,520, an initial NWC investment of $4,240, and an annual OCF of -$67,840. The fixed asset is fully depreciated over the life of the project and has no salvage value.

Required:

If the required return is 13 percent, what is the project's equivalent annual cost, or EAC?

Reference no: EM13730342

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