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Please ans asap Question: A project with a life of 5 has an initial fixed asset investment of $32,760, an initial NWC investment of $3,120,

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A project with a life of 5 has an initial fixed asset investment of $32,760, an initial NWC investment of $3,120, and an annual OCF of $49,920. The fixed asset is fully depreciated over the life of the project and has no salvage value.

If the required return is 13 percent, what is the project's equivalent annual cost, or EAC?

Multiple Choice

  • $-59,639.74

  • $-62,621.73

  • $-56,657.76

  • $-41,953.35

  • $-50,693.78

  • Question:
  • Dog Up! Franks is looking at a new sausage system with an installed cost of $600,600. This cost will be depreciated straight-line to zero over the project's 8-year life, at the end of which the sausage system can be scrapped for $92,400. The sausage system will save the firm $184,800 per year in pretax operating costs, and the system requires an initial investment in net working capital of $43,120.

    If the tax rate is 22 percent and the discount rate is 16 percent, what is the NPV of this project?

    Multiple Choice

  • $67,276.18

  • $119,227.28

  • $93,722.98

  • $97,243.48

  • $89,259.98

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