What is this projects equivalent annual cost

Assignment Help Financial Management

Reference no: EM13878606

A five-year project has an initial fixed asset investment of $360,000, an initial NWC investment of $40,000, and an annual OCF of −$39,000. 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: EM13878606

Questions Cloud

Identify and explain the three types of internal : Identify and explain the three types of internal source computer fraud.

Considering new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.97 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

Whom does management have a stewardship obligation : Management is held accountable to various parties, both internal and external to the business organization. To whom does management have a stewardship obligation and to whom does it have reporting responsibilities?

Write a code/program to evaluate : Write a code/program to evaluate the following arithmetic expression: X= (A - B) * ( ( ( C - D * E ) / F ) / G )

What is this projects equivalent annual cost : A five-year project has an initial fixed asset investment of $360,000, an initial NWC investment of $40,000, and an annual OCF of −$39,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..

Can you describe any other examples of cloud computing? : Both Gmail and iCloud for iTunes were mentioned as examples of cloud computing. Can you describe any other examples of cloud computing?

What is the estimated value of rolens preferred stock : Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 9% of its $100 par value. Preferred stock of this type currently yields 6%. Assume dividends are paid annually. What is the estimated value of Rolen's preferred s..

Calculate the expected return on each stock : SML Suppose you observe the following situation: Return if State Occurs State of Probability of Economy State Stock A Stock B Bust .15 − .10 − .08 Normal .60 .09 .08 Boom .25 .32 .26 a. Calculate the expected return on each stock. (Do not round inter..

The cloud service to become operational again : Over the past 3 years, a cloud service has been unavailable for a total of 36 hours, primarily due to a denial of service attacks. Additionally, the physical server hosting the cloud service crashed once. It took the cloud provider 4 days to replace ..

User Account

All Pages