Question

A project with a life of 10 has an initial fixed asset investment of $30,240, an...

A project with a life of 10 has an initial fixed asset investment of $30,240, an initial NWC investment of $2,880, and an annual OCF of –$46,080. The fixed asset is fully depreciated over the life of the project and has no salvage value.

  

If the required return is 20 percent, what is the project's equivalent annual cost, or EAC?

Multiple Choice

  • $-45,788.59

  • $-53,868.93

  • $-56,562.37

  • $-22,584.40

  • $-51,175.48

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A project with a life of 10 has an initial fixed asset investment of $23,100, an...
A project with a life of 10 has an initial fixed asset investment of $23,100, an initial NWC investment of $2,200, and an annual OCF of –$35,200. 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 the project's equivalent annual cost, or EAC? Multiple Choice $-23,182.62 $-41,332.63 $-33,459.75 $-39,364.41 $-37,396.19
A project with a life of 8 has an initial fixed asset investment of $27,300, an...
A project with a life of 8 has an initial fixed asset investment of $27,300, an initial NWC investment of $2,600, and an annual OCF of –$41,600. The fixed asset is fully depreciated over the life of the project and has no salvage value.    If the required return is 15 percent, what is the project's equivalent annual cost, or EAC? Multiple Choice $-45,670.12 $-40,862.74 $-26,965.33 $-48,073.81 $-50,477.50
A project with a life of 10 has an initial fixed asset investment of $41,580, an...
A project with a life of 10 has an initial fixed asset investment of $41,580, an initial NWC investment of $3,960, and an annual OCF of –$63,360. The fixed asset is fully depreciated over the life of the project and has no salvage value.    If the required return is 15 percent, what is the project's equivalent annual cost, or EAC?
A project with a life of 7 has an initial fixed asset investment of $23,520, an...
A project with a life of 7 has an initial fixed asset investment of $23,520, an initial NWC investment of $2,240, and an annual OCF of –$35,840. 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?
A project with a life of 9 has an initial fixed asset investment of $22,260, an...
A project with a life of 9 has an initial fixed asset investment of $22,260, an initial NWC investment of $2,120, and an annual OCF of –$33,920. 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 the project's equivalent annual cost, or EAC?
A project with a life of 11 has an initial fixed asset investment of $35,280, an...
A project with a life of 11 has an initial fixed asset investment of $35,280, an initial NWC investment of $3,360, and an annual OCF of –$53,760. 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 the project's equivalent annual cost, or EAC?
A project with a life of 10 has an initial fixed asset investment of $20,160, an...
A project with a life of 10 has an initial fixed asset investment of $20,160, an initial NWC investment of $1,920, and an annual OCF of –$30,720. 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 the project's equivalent annual cost, or EAC? $-36,072.12 $-29,201.24 $-34,354.40 $-20,232.10 $-32,636.68 Please show work
A 6-year project has an initial fixed asset investment of $42,000, an initial NWC investment of...
A 6-year project has an initial fixed asset investment of $42,000, an initial NWC investment of $4,000, and an annual OCF of -$64,000. The fixed asset is fully depreciated over the life of the project and has no salvage value.    Required: If the required return is 19 percent, what is the project's equivalent annual cost, or EAC? (Do not round your intermediate calculations.)
A 7-year project has an initial fixed asset investment of $16,380, an initial NWC investment of...
A 7-year project has an initial fixed asset investment of $16,380, an initial NWC investment of $1,560, and an annual OCF of -$24,960. The fixed asset is fully depreciated over the life of the project and has no salvage value. Required: If the required return is 8 percent, what is the project's equivalent annual cost, or EAC? (Do not round your intermediate calculations.) a. $-23,996.30 b. $-20,997.25 c. $-29,642.49 d. $-26,819.40 e. $-28,230.95
A project with a life of 10 has an initial fixed asset investment of $40,320, an...
A project with a life of 10 has an initial fixed asset investment of $40,320, an initial NWC investment of $3,840, and an annual OCF of –$61,440. 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? $-64,664.85 $-57,858.03 $-43,683.88 $-71,471.68 $-68,068.27 A gym owner is considering opening a location on the other side of town. The...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT