A 5-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 18 percent, what is the project's equivalent annual cost, or EAC? (Do not round your intermediate calculations.)

rev: 09_18_2012

$-57,792.42

$-67,991.08

$-64,591.53

$-42,523.95

$-71,390.64