What Is the Equivalent Annual Cost for a Project That

question 111

Multiple Choice

What is the equivalent annual cost for a project that requires a $40,000 investment at time-period zero, and a $10,000 annual expense during each of the next 4 years, if the opportunity cost of capital is 10 percent?

• A)$20,000.00
• B)$21,356.95
• C)$22,618.83
• D)$25,237.66