A project with a life of 9 has an initial fixed asset investment of $26,880, an initial NWC investment of $2,560, and an annual OCF of $40,960. 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?

P10-18 Calculating EAC [LO4] A project with a life of 9 has an initial fixed asset investment of $26,880, investment of $2,560, and an annual OCF of-$40,960. The fixed asset is fully depreciated over the life of the project and has no salvage value. an initial NWC If the required return is 15 percent, what is the project's equivalent annual cost, or EAC? Multiple Choice $-49,326.22 $-39,93075 S-46,97735 $-44,628.48 $-24,906 26