What is the project equivalent annual cost or EAC

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Reference no: EM131538240

A 9-year project has an initial fixed asset investment of $11,760, an initial NWC investment of $1,120, and an annual OCF of -$17,920. 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?

A -20,167.08

B -17,142.01

C. -21,175.43

D -19,158.72

E -12,407.34

Reference no: EM131538240

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