In: Finance
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