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A five-year project has an initial fixed asset investment of $310,000, an initial NWC investment of $30,000, and an annual OCF of -$29,000. The fixed
A five-year project has an initial fixed asset investment of $310,000, an initial NWC investment of $30,000, and an annual OCF of -$29,000. 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? II. Calculate the accounting break-even, the cash break-even and the financial break-even points for this project. The company's required return is 9% and the project will run for 5 years. Round your answer up to the next highest integer. Ignore any tax effects in calculating the cash break-even. Unit Price $ 3,020 Unit Variable Cost $ 2,275 Annual Fixed Costs $ 9,000,000 Equipment Cost $ 3,100.000
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