A project with a life of 10 years has an initial fixed asset investment of $50000,...

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A project with a life of 10 years has an initial fixedasset investment of $50000, an initial NWC investment of $10000 andan annual OCF of -$705000. the fixed asset is fully depreciatedover the life of the project and has no salvage. If the requiredreturn is 12% what is the projects EAC?

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A project with a life of 10 years has an initial fixedasset investment of $50000, an initial NWC investment of $10000 andan annual OCF of -$705000. the fixed asset is fully depreciatedover the life of the project and has no salvage. If the requiredreturn is 12% what is the projects EAC?

A project with a life of 10 years has an initial fixed asset investment of $50000,...

80.2K

Verified Solution

Question

Finance

A project with a life of 10 years has an initial fixedasset investment of $50000, an initial NWC investment of $10000 andan annual OCF of -$705000. the fixed asset is fully depreciatedover the life of the project and has no salvage. If the requiredreturn is 12% what is the projects EAC?

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