What is projects equivalent annual cost

Assignment Help Management Theories

Reference no: EM13761041

Problem:

A five-year project has an initial fixed asset investment of $320,000, an initial NWC investment of $32,000, and an annual OCF of -$31,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 10 percent,

Required:

Question: What is this project's equivalent annual cost, or EAC? Please explain in detail and provide step by step solution.

Reference no: EM13761041

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