A 6-year project has an initial fixed asset investment of $42,000, an initial NWC investment of $4,000, and an annual OCF of -$64,000. 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.)

Multiple Choice

• $-44,727.47

• $-80,564.64

• $-72,891.81

• $-76,728.23

• $-65,218.99