A project with a life of 5 has an initial fixed asset investment of $24,360, an initial NWC investment of $2,320, and an annual OCF of $37,120. The fixed asset is fully depreciated over the life of the project and has no salvage value.

If the required return is 8 percent, what is the project's equivalent annual cost, or EAC?

A project with a life of 5 has an initial fixed asset investment of $24,360, an initial NWC investment of $2,320, and an annual OCF of $37,120. The fixed asset is fully depreciated over the life of the project and has no salvage value.

If the required return is 8 percent, what is the project's equivalent annual cost, or EAC?

• $-36,895.71

• $-34,662.09

• $-43,406.72

• $-45,577.06

• $-41,236.38