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A five-year project has an initial fixed asset investment of $290,000, an initial NWC investment of $25,000, and an annual OCF of -$35,000. The
A five-year project has an initial fixed asset investment of $290,000, an initial NWC investment of $25,000, and an annual OCF of -$35,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 11 percent, what is this project's equivalent annual cost, or EAC? Initial fixed asset investment $ 290,000 Initial NWC investment $ 25,000 Annual OCF $ (35,000) Required return 11% *Depreciation staight-line over life 5 Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel functions to answer this question. Cash flows Year 0 Year 1 Year 2 Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel functions to answer this question. Cash flows Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 NPV EAC
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