A project with a life of 11 has an initial fixed asset investment of $33,180, an initial NWC investment of $3,160, and an annual OCF of $50,560. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 15 percent, what is the project's equivalent annual cost, or EAC? Multiple Choice $27,297.93 $57,373.67 $54,504.99 $48,767.62 $60,242.35 Your firm is contemplating the purchase of a new $1,776,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $172,800 at the end of that time. You will be able to reduce working capital by $240,000 (this is a one-time reduction). The tax rate is 23 percent and your required return on the project is 18 percent and your pretax cost savings are $689,000 per year. a. What is the NPV of this project? b. What is the NPV if the pretax cost savings are $496,100 per year? c. At what level of pretax cost savings would you be indifferent between accepting the project and not accepting it? A project with a life of 11 has an initial fixed asset investment of $33,180, an initial NWC investment of $3,160, and an annual OCF of $50,560. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 15 percent, what is the project's equivalent annual cost, or EAC? Multiple Choice $27,297.93 $57,373.67 $54,504.99 $48,767.62 $60,242.35 Your firm is contemplating the purchase of a new $1,776,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $172,800 at the end of that time. You will be able to reduce working capital by $240,000 (this is a one-time reduction). The tax rate is 23 percent and your required return on the project is 18 percent and your pretax cost savings are $689,000 per year. a. What is the NPV of this project? b. What is the NPV if the pretax cost savings are $496,100 per year? c. At what level of pretax cost savings would you be indifferent between accepting the project and not accepting it