Projects equivalent annual cost

Assignment Help Accounting Basics

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

Questions Cloud

Elucidate how a job cost sheet for liberty tax service : Assume that liberty tax service uses a job order costing system. For the basic cost category of direct materials, elucidate how a job cost sheet for liberty tax service would differ from a job cost sheet for a manufacturing company.

What is the real after-tax return on the investment : RCMP, Inc. shares rose 10 percent in value last year while the inflation rate was 3.5 percent. What was the real return on the stock? If an investor sold the stock after one year and paid taxes on the investment at a 15 percent tax rate, what is t..

Minimum daily cost calculations : A specialty-freezer company has determined that the operating costs at one of its plants can be approximated by the function:

What volume of 2.94 m hno3 can be made : What volume of 2.94 M HNO3 can be made by diluting 128 mL of concentrated nitric acid (16.0 M HNO3)

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

What is an audit procedure : How does the auditor's responsibility for detecting errors differ from their responsibility to detect fraud?

Do the results provide good evidence : Give a 99% confidence interval for the proportion of all U.S. adults who attended church or synagogue during the week preceding the poll.

Revenue function and graphing : A small gift shop is trying to determine the number of gift items it can sell to maintain a monthly revenue greater than $10,000. The revenue function for this business is R = -0.10N2 +70N, where R=monthly revenue and N=number of gift items sold p..

How is the equilibrium price determined : How is the equilibrium price determined? What happens if the price is above the equilibrium price? What happens if the price is below the equilibrium price?

User Account

All Pages