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A 10-year project has an initial fixed asset investment of $10,500, an initial NWC investment of $1,000, and an annual OCF of -$16,000. The fixed
A 10-year project has an initial fixed asset investment of $10,500, an initial NWC investment of $1,000, and an annual OCF of -$16,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. |
Required: |
If the required return is 19 percent, what is the project's equivalent annual cost, or EAC? |
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