What is this project equivalent annual cost

Reference no: EM131976011

Question: A five-year project has an initial fixed asset investment of $355,000, an initial NWC investment of $39,000, and an annual OCF of -$38,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 11 percent, what is this project's equivalent annual cost, or EAC? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Equivalent annual cost $

Reference no: EM131976011

Questions Cloud

Define what is and what ought to be in this case : Was my boss's practice ethical? Does working for a company for 13 years justify sending out personal mail that the company pays for?

Calculate the annual after-tax operating cash flow : FITCO Inc. is the manufacturer of exercise machines and is considering producing a new line of equipment in an effort to increase its market share.

Why are most computer users still ignorant about the threats : In your opinion, why are most computer users still ignorant about the threats posed to their computers / systems?

How does the corporation to reduce the risk in trade : Write a minimum two full pages of report with double spaces to explain the cause and effect related the topic given.

What is this project equivalent annual cost : A five-year project has an initial fixed asset investment of $355,000, an initial NWC investment of $39,000, and an annual OCF of -$38,000.

Should we try to reform criminals by erasing their memories : Should we try to reform criminals by erasing their memories? Should we try to reform criminals by changing their character?

Construct replicating portfolio to replicate : Construct a Replicating Portfolio (RP) to replicate a 1.5-year Bond-0 that pays 14.59 percent of coupon per year. What is the arbitrage fair price of Bond-0?

Explain the role and function of evaluation in creating : Sustainability is a growing demand for performance practitioners to address. Explain the role and function of evaluation in creating and demonstrating.

Determine the perpetual equivalent annual maintenance cost : A major company in US in chemical operation has installed an in-shaft monitoring system for oxygen tank and gear readiness for emergencies.

User Account

All Pages