What is this project equivalent annual cost or EAC

Assignment Help Financial Management

Reference no: EM131496459

A five-year project has an initial fixed asset investment of $265,000, an initial NWC investment of $21,000, and an annual OCF of −$20,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent, what is this project’s equivalent annual cost, or EAC?

Reference no: EM131496459

Questions Cloud

Different scenarios for deployment of operating system : Draft a response to the questions below, which will address different scenarios for deployment of the operating system.

Explain the benefits to company and customer : Explain the significance of information systems to the management of organisations? How do they relate to the core task of managing?

Highest growth percent is always the best performing : Is it true that the investment with the highest growth percent is always the best performing? Explain.

Latest version of the distributed file system : Windows® 2012 R2 includes the latest version of the Distributed File System. This is a core technology that allows organizations of any size to collaborate.

What is this project equivalent annual cost or EAC : what is this project’s equivalent annual cost, or EAC?

Explain conflict management styles evidenced in given case : Explain conflict management styles evidenced in given case. Propose a conflict resolution strategy to be used. Recommend strategies to reduce cost liabilities.

Is it worthwhile to buy the computer : RightPrice Investors, Inc., is considering the purchase of a $363,000 computer with an economic life of five years. Is it worthwhile to buy the computer?

Identify some possible difficulties in using erp systems : Draw a sketch to illustrate why computer-based information systems require more than the management of technology.

Why is such a spread called synthetic forward : Derive the price for your spread from the put-call parity. Why is such a spread called “synthetic forward”?

User Account

All Pages