Question
A 5 year project has an initial fixed investment of 335,000, an initial NWC investment of 35,000 and an annual OCF of -34,000. The fixed
A 5 year project has an initial fixed investment of 335,000, an initial NWC investment of 35,000 and an annual OCF of -34,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 10%, what is this projects equivalent annual cost (EAC)?
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
