What is this project equivalent annual cost or eac

Assignment Help Financial Management
Reference no: EM132006029

A five year project has an initial fixed asset investment of $285,000, an initial NWC investment of $25,000, and an annual OCF of -$24,000. The fixed asset is fully depreciated over 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: EM132006029

Questions Cloud

On the basis of annual equivalent analysis : Magna is considering one of two forklift trucks for its assembly plant. Truck A costs $16,000 and requires $4,000 annually in operating expenses.
Businesses could freely engage in insider trading : What would happen to the U.S. economy if CEO's of major corporations or businesses could freely engage in insider trading?
One feature that mutual funds and exchange traded funds : One feature that mutual funds and exchange traded funds have in common is
What is operating cash flow : ABC, Inc is planning the purchase of new equipment that costs $102,272. what is the operating cash flow?
What is this project equivalent annual cost or eac : If the required return is 11 percent, what is this project’s equivalent annual cost, or EAC?
Preferred stock has fixed amount of dividends : Preferred stock has a fixed amount of dividends that must be paid before dividends can be paid on the common stock.
Discuss the effect of both the size of the rate of return : Discuss the effect of both the size of the rate of return and the time until receipt of payment on the present value of a future sum.
What is bond nominal yield to maturity-nominal yield to call : What is the bond's nominal yield to maturity? What is the bond's nominal yield to call? What is the expected capital gains (or loss) yield for the coming year?
What is the total cash flow in year eight of the project : What is the Total Cash Flow in Year 8 of the project if the equipment can be sold for $5,711 and the tax rate is 25%?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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