Question: 15. 18. Calculating EAC [LO 10.4] A five-year project has an initial noncurrent asset investment of $315 000, an initial NWC investment of $25 000

15. 18. Calculating EAC [LO 10.4] A five-year project has an initial noncurrent asset investment of $315 000, an initial NWC investment of

$25 000 and an annual OCF of −$35 000. The non-current asset is fully depreciated over the life of the project and has no salvage value. If the required return is 11 per cent, what is this project’s equivalent annual cost or EAC?

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