What is this projects equivalent annual cost

Assignment Help Finance Basics
Reference no: EM13259057

A five-year project has an initial fixed asset investment of $310,000, an initial NWC investment of $30,000, and an annual OCF of ?$29,000. 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?

Reference no: EM13259057

Questions Cloud

Examine and evaluate the disparity : Examine and evaluate the disparity of your state's budget allocation for education and property tax to the various localities.
The normal return on investment equals : A women managing a photocopying establishment for $25,000 per year decides to open her own duplicating place. Her revenue during the first year of operation is$120,000.
In what ways did film production in the soviet bloc nations : In what ways did film production in the Soviet bloc nations adhere to and depart from the Soviet industry structure and the Socialist Realist aesthetic?
Prepare statement of cash flows using the indirect method : The investments were sold for $175,000 cash. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities?
What is this projects equivalent annual cost : If the required return is 11 percent, what is this project's equivalent annual cost, or EAC?
Case study of zero company : On January 1, 2010, Zero Company obtained a $52,000, four-year, 6.5% installment note from Regional Bank. The note requires annual payments of $15,179, beginning on December 31, 2010. The December 31, 2011 carrying amount in the amortization table..
Determien the time displacement in a periodic function : Show that the time displacement in a periodic function has no effect on the magnitude spectrum, but changes the phase spectrum by an amount of -nω0τ radians for the component of the frequency nω0 if the time displacement is τ.
Describe the relationship between bus riders and gasoline : In Pioneer ville the price elasticity of demand fro bus ridersis .5, the income elasticity of demand fro bus riders is -0.1. Describe the relationship between bus riders and gasoline.
How could they use that information to their advantage : If a person with malicious intent were to get into your network and have read/write access to your IDS log or rule set how could they use that information to their advantage?

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine break even point

Student A is considering to finance her college education by selling programs at the football games for school. There is a fixed cost of $400 for printing these programs, and the variable expense is $3.00.

  Find the value of one right

Gold Mining Company is seeking to increase $10,000,000 through a rights offering. The firm presently has 1,000,000 shares of common stock outstanding at a current market price of $25 per share.

  Present value of future cash flows

XYZ, Inc. has an offer to buy ABC & Sons. XYZ thinks ABC can produce cash flows of $5k, $9k, & $15k over the next three years (respectively).

  What is the portfolio weight of stock c

Kate invested $7,400 in stock A, $11,200 in stock B, and $3,900 in stock C. What is the portfolio weight of stock C

  Find the portfolio beta

You own a stock portfolio invested 25 percent in stock Q, 20 percent in stock R, 15% in stock S, and 40% in stock T. The betas for these stocks are .84, 1.17, 1.11, and 1.36 respectively.

  Determine the return the investment

The expected return for an investment is 30 percent. If we know the following data about the return distribution of investment, determine the return the investment produce if the economic climate is average?

  What is todays value of the bequest

A rich relative has bequeathed you a payment of $1,000 one year from now. Each year after that, you will receive a payment on the anniversary of the last payment that is 8% larger than the previous payment.

  Computation of equity capital contribution

Computation of equity capital contribution and Before Tax Cash Flow and After Tax Cash Flow and What is the Before-tax Cash Flow to the equity investor

  Calculate the banks risk-weighted assets

New bank started its first day of operations with $6 million in capital. A total of 100 million dollar in checkable deposits is received. The bank makes a 25 million dollar commercial loan and another $25 million in mortgage loans.

  Determine the firm''s free cash flow and calculate the liquid

determine the firm's free cash flow and calculate the liquidity, activity, debt, profitability, and market ratios for Jaedan industries. Perform a DuPont analysis and compare the firm to the industry ratios (see last table in this sequence). Highligh..

  Calculation of yield to maturity on bonds and finding out

Calculation of yield to maturity on bonds and finding out reason and explain why the International Paper bond is selling at a premimum but Sara Lee is selling at a discount

  Estimate the monthly payment

A loan was made ten years ago with an original balance of $1,000,000.00 at a fixed interest rate of 8.00% with equal monthly payments for thirty years.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd