What is the project equivalent annual cost

Reference no: EM13292850

A 11-year project 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.

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 $-56,035.79
B $-50,699.05
C $-45,362.31
D $-21,766.63
E $-53,367.42

Reference no: EM13292850

Questions Cloud

Find the overall pre-tax and after-tax cost of debt : Find the overall pre-tax and after-tax cost of debt for a company with the following bonds. The tax rate is 35%.

Find how much work is done by the electric force : Two identical point charges are fixed to diagonally opposite corners of a square that is 0.420 m on a side. How much work is done by the electric force

What is maximum number of operations that can be specified : A computer has a 32-bit instruction word broken into fields as follows: opcode, six bits; two register fields, five bits each; and one immediate operand/register field, 16 bits (a) What is the maximum number of operations that can be specified

Discuss consumer perception and attitude formation : You have just launched a new organic chocolate bar that is priced 25% higher than an equivalent Cadbury chocolate bar. Assume that both chocolate bars tastes are very similar to each other

What is the project equivalent annual cost : If the required return is 19 percent, what is the project's equivalent annual cost, or EAC? (Do not round your intermediate calculations.)

How would the km change for methanol : How would the Km change for methanol compared to ethanol and how would the Km's of methanol and isopropanol compare.

What is the irr for this project : If the tax rate is 33 percent, what is the IRR for this project? (Do not round your intermediate calculations.)

At what level of pretax cost savings would be indifferent : At what level of pretax cost savings would you be indifferent between accepting the project and not accepting it?

Marketers are concerned with consumer perception : "Firms always want consumers to notice changes or modifications to their product lines." Using consumer behaviour concepts, discuss this statement. Further, discuss tactics firms may use to enhance exposure, characteristics of attention, and why mark..

User Account

All Pages