Question 7<\/p>
Project A has an NPV of 100000. The project is financed by borrowing at 7%pa. The cost of capital for Project A is 0.1. This rate is expressed as a decimal, e.g. so that .12 is equal to 12%. The project has 6 year life. Calculate the Annual Equivalent (AE). Your textbook calls this EAV, Equivalent Annual Value. <\/p>
Calculate to the nearest dollar.<\/p>", "transcribed_text": "", "related_book": { "title": "Core Macroeconomics", "isbn": "978-1429278478, 1429278471, 978-1429278492, 1429278498, 1464191433, 978-1464191435", "edition": "3rd edition", "authors": "Eric Chiang", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/648.jpg", "uri": "\/textbooks\/core-macroeconomics-3rd-edition-648", "see_more_uri": "" }, "free_related_book": { "isbn": "0880912006", "uri": "\/textbooks\/the-complete-recipe-writing-guide-mastering-recipe-development-writing-testing-nutrition-analysis-and-food-styling-1st-edition-978-0880912006-310374", "name": "The Complete Recipe Writing Guide Mastering Recipe Development Writing Testing Nutrition Analysis And Food Styling", "edition": "1st Edition" }, "question_posted": "2024-06-28 09:43:14", "see_more_questions_link": "\/study-help\/questions\/business-human-resource-management-2020-May-22", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/what-are-the-advantages-of-webbased-fillin-forms", "description": "What are the advantages of Web-based fill-in forms?", "stars": 3 }, { "url": "\/study-help\/business-statistics-in-practice\/17-flight-decision-expected-value-if-you-think-the-probability-1983649", "description": "=+17. 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