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3. Techron I costs $290,000, has a 3 year life and operating cash flows of -$50,000 per year. If the discount rate is 10%, what

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3. Techron I costs $290,000, has a 3 year life and operating cash flows of -$50,000 per year. If the discount rate is 10%, what is the Equivalent Annual Cost? Capital Investment In-Class Exercise Cost Projects Equivalent Annual Cost Techron Discount Rate: 10.00% Time 0 Time 1 Time 2 Time 3 Techron 1 Present Value of Techron 1 Equivalent Annual Cost Techron 1 3. Techron I costs $290,000, has a 3 year life and operating cash flows of -$50,000 per year. If the discount rate is 10%, what is the Equivalent Annual Cost? Capital Investment In-Class Exercise Cost Projects Equivalent Annual Cost Techron Discount Rate: 10.00% Time 0 Time 1 Time 2 Time 3 Techron 1 Present Value of Techron 1 Equivalent Annual Cost Techron 1

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