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?

Expert Solution

Answer : $3,678,988

Calculation is attached below :

jeff jeffy answered 1 year ago

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