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1. A 6-year project has an initial fixed asset investment of $36,540, an initial NWC investment of $3,480, and an annual OCF of -$55,680. The
1.
A 6-year project has an initial fixed asset investment of $36,540, an initial NWC investment of $3,480, and an annual OCF of -$55,680. The fixed asset is fully depreciated over the life of the project and has no salvage value. |
Required: |
If the required return is 10 percent, what is the project's equivalent annual cost, or EAC? |
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