What is this project equivalent annual cost or EAC

Assignment Help Financial Management

Reference no: EM131509153

A five-year project has an initial fixed asset investment of $350,000, an initial NWC investment of $38,000, and an annual OCF of −$37,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 10 percent, 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.)

Reference no: EM131509153

Questions Cloud

Find out simple pay back : Your Company plans to purchase a 10-ton A/C to replace an existing unit. find out Simple Pay back.

Determine the total interest that was earned : Determine the total interest that was earned from January 1, 2014 to January 1, 2017?

What maximum amount may be charged by a manager : What maximum amount may be charged by a manager who organizes the group effort if the minimum acceptable benefit/cost ratio is 2?

Payoff diagram for deposit account without deposit insurance : Draw a graph in the space below with the payoff diagram for their deposit account without deposit insurance,

What is this project equivalent annual cost or EAC : f the required return is 10 percent, what is this project’s equivalent annual cost, or EAC?

Sketch the function of the values of a european : Sketch the function of the values of a European put vs an American put.

Different and mutually exclusive investment opportunity : Suppose you are given a different and mutually exclusive investment opportunity,

Difference between unitary and split DX systems : Life-Cycle cost by showing accumulative present values for the next 5 years. Describe the basic difference between unitary and split DX systems

Determine the interest payment for the three bonds : Determine the interest payment for the following three bonds: 2.5 percent coupon corporate bond (paid semi-annually), 3.15 percent coupon Treasury note,

User Account

All Pages