Question
A project with a life of 11 has an initial fixed asset investment of $33,600, an initial NWC investment of $3,200, and an annual OCF
A project with a life of 11 has an initial fixed asset investment of $33,600, an initial NWC investment of $3,200, and an annual OCF of -$51,200. The fixed asset is fully depreciated over the life of the project and has no salvage value.If the required return is 9 percent, what is the project's equivalent annual cost, or EAC?
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
