A five-year project has an initial fixed asset investment of $265,000, an initial NWC investment of...

A five-year project has an initial fixed asset investment of $265,000, an initial NWC investment of $21,000, and an annual OCF of −$20,000. 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 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.)

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jeff jeffy answered 2 years ago

A five-year project has an initial fixed asset investment of $310,000, an initial NWC investment of...

A five-year project has an initial fixed asset investment of $310,000, an initial NWC investment of $30,000, and an annual OCF of -$29,000. 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 five-year project has an initial fixed asset investment of $275,000, an initial NWC investment of...

A five-year project has an initial fixed asset investment of $275,000, an initial NWC investment of $23,000, and an annual OCF of −$22,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 10 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.,...

A five-year project has an initial fixed asset investment of $260,000, an initial NWC investment of...

A five-year project has an initial fixed asset investment of $260,000, an initial NWC investment of $20,000, and an annual OCF of -$19,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 10%, what is this project's equivalent annual cost, or EAC?

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

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? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Calculating EAC A five-year project has an initial fixed asset investment of$8,200,000, an initial NWC investment...

Calculating EAC A five-year project has an initial fixed asset investment of$8,200,000, an initial NWC investment of $752,000 and an annual OCF of $1,120,000.The fixed asset is fully depreciated over the life of the project and has no salvagevalue. If the required return is 15 percent, what is this project’s equivalent annualcost, or EAC?

A 5-year project has an initial fixed asset investment of $522,600, an initial net working capital...

A 5-year project has an initial fixed asset investment of $522,600, an initial net working capital investment of $13,200, and an annual operating cash flow of -$51,480. The fixed asset is fully depreciated over the life of the project and has no salvage value. The net working capital will be recovered when the project ends. The required return is 15.8 percent. What is the project's equivalent annual cost, or EAC?

A project with a life of 12 has an initial fixed asset investment of $21,420, an...

A project with a life of 12 has an initial fixed asset investment of $21,420, an initial NWC investment of $2,040, and an annual OCF of –$32,640. 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?

A project with a life of 11 has an initial fixed asset investment of $44,520, an...

A project with a life of 11 has an initial fixed asset investment of $44,520, an initial NWC investment of $4,240, and an annual OCF of –$67,840. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 14 percent, what is the project's equivalent annual cost, or EAC? Multiple Choice $-37,970.01 $-76,598.31 $-80,428.23 $-72,768.40 $-65,108.57

A project with a life of 9 has an initial fixed asset investment of $31,500, an...

A project with a life of 9 has an initial fixed asset investment of $31,500, an initial NWC investment of $3,000, and an annual OCF of –$48,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 9 percent, what is the project's equivalent annual cost, or EAC? a) -56200.37 b)-53524.16 c)-45495.54 d)-50847.95 e)-35654.51

A project with a life of 8 has an initial fixed asset investment of $45,360, an...

A project with a life of 8 has an initial fixed asset investment of $45,360, an initial NWC investment of $4,320, and an annual OCF of –$69,120. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 16 percent, what is the project's equivalent annual cost, or EAC?

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