Projects equivalent annual cost

Reference no: EM13123513

A 11-year project has an initial fixed asset investment of $19,320, an initial NWC investment of $1,840, and an annual OCF of -$29,440. The fixed asset is fully depreciated over the life of the project and has no salvage value.

Required:

If the required return is 11 percent, what is the project's equivalent annual cost, or EAC? (Do not round your intermediate calculations.)

Multiple Choice:

$-31,117.49
$-18,481.46
$-27,841.97
$-32,755.26
$-34,393.02

Reference no: EM13123513

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