A five-year project has an initial fixed asset investment of $325,000, an initial NWC investment of $33,000, and an annu

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

A five-year project has an initial fixed asset investment of $325,000, an initial NWC investment of $33,000, and an annu

Post by answerhappygod »

A Five Year Project Has An Initial Fixed Asset Investment Of 325 000 An Initial Nwc Investment Of 33 000 And An Annu 1
A Five Year Project Has An Initial Fixed Asset Investment Of 325 000 An Initial Nwc Investment Of 33 000 And An Annu 1 (44.63 KiB) Viewed 18 times
A five-year project has an initial fixed asset investment of $325,000, an initial NWC investment of $33,000, and an annual OCF of -$32,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 11 percent, what is this project's equivalent annual cost, or EAC? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Equivalent annual cost
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”