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Please show how to arrive at the answer - Thanks! A 6-year project has an initial fixed asset investment of $42,840, an initial NWC investment
Please show how to arrive at the answer - Thanks!
A 6-year project has an initial fixed asset investment of $42,840, an initial NWC investment of $4,080, and an annual OCF of -$65,280. The fixed asset is fully depreciated over the life of the project and has no salvage value.
Required: |
If the required return is 14 percent, what is the project's equivalent annual cost, or EAC? (Do not round your intermediate calculations.) |
Multiple choice:
(a )$-76,867.83 | |
(b) $-73,024.44 | |
(c) $-49,818.90 | |
(d) $-65,337.65 | |
(e) $-80,711.22
|
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