Project equivalent annual cost-eac

Assignment Help Finance Basics
Reference no: EM13752574

A five-year project has an initial fixed asset investment of $355,000, an initial NWC investment of $39,000, and an annual OCF of -$38,000. 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?

Reference no: EM13752574

Questions Cloud

Write paper on progressive era through the great depression : Write paper on Progressive Era through the Great Depression.
What are some possible strategies for liz to utilize : Read the "Nutri- Case" - What are some possible strategies for Liz to utilize and In addition to shopping, dining out, and eating at friends' houses, what other situations might require Liz to be cautious about her food choices
Impact on aggregate supply and aggregate demand : Economic Factors and the Impact on Aggregate Supply and Aggregate Demand
Write a paper on greek and roman ancient civilization : Write a paper on Greek and Roman Ancient Civilization.
Project equivalent annual cost-eac : A five-year project has an initial fixed asset investment of $355,000, an initial NWC investment of $39,000, and an annual OCF of -$38,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required..
Compare after-tax returns on all three forms of investment : Compare after-tax returns on all three forms of investment. Rank the investment options - what is the best option now? Please be sure to keep the initial decrease in consumption (after-tax income) constant - What if the rates are 15% now and 30% in r..
What types of projects require collaboration : What types of projects require collaboration and What are four primary attributes of an effective writing team? Provide an example for each
Why did us support different terrorist organizations : Why did the United States and the Soviet Union each support different terrorist organizations?
Explain definitions of terrorism : Is there any place in the statue where the concept of terrorism or one of the definitions of terrorism is inserted in or is part of a provision describing a substantive violation of this section?

Reviews

Write a Review

Finance Basics Questions & Answers

  If life insurance is used to fund a corporate entity

1.an executor can elect to value all real property and certain tangible personal property according to special

  What the intrinsic value of the company common stock

What the intrinsic value of the company's common stock?

  What is a lower bound for the price of a 4-month call

what is a lower bound for the price of a 4-month call option on a nondividend-paying stock when the stock price is 28

  Which of the following is not an example of a source

which of the following is not an example of a source document?a. purchase invoice.b. chart of accounts.c. cash register

  Using the ken french daily data on the market risk

Using the Ken French daily data on the market risk premium Rm-Rf back to 1926 (posted in UBLearns), sort the returns and estimate the standard deviation.

  Find current stock price

The Lashgari Company is expected to pay a dividend of $1 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5 percent per year in future.

  If discount rate is 7 percent find the future value of cash

toadies inc. has identified an investment project with the following cash flows. year cash flow 1 1575 2 1695 3

  Explain why two other research designs were not used

Determine the most appropriate research design for the issue,opportunity, or problem indentified in Week Three. Explain why two other research designs were not used?

  What is the current value of one share of this stock

The company just paid a dividend of $0.80 per share. What is the current value of one share of this stock if the required rate of return is 17%?

  Sony corp packed a shipment of videocassette tapes into a

sony corp. packed a shipment of videocassette tapes into a 40-foot ocean container for transport to england. sony put

  Dupont analysis doublewide dealers has an roa of10 a 2

dupont analysis doublewide dealers has an roa of10 a 2 profit margin and an roe of 15.nbspwhat is its totalassets

  Estimate the effective cost of the credit line

You decide to establish the line of credit for $40 million. Currently, your company does not hold balances in their accounts at the bank and pays fees for all cash management services.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd