A project with a life of 8 has an initial fixed asset investment of $9,660, an initial NWC investment of $920, and an annual OCF of -$14,720. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent, what is the project's equivalent annual cost, or EAC? Multiple Choice $-16,774.99

A project with a life of 8 has an initial fixed asset investment of $9,660, an initial NWC investment of $920, and an annual OCF of -$14,720. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent, what is the project's equivalent annual cost, or EAC? Multiple Choice $-16,774.99

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 1P

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