A 4-Year Project Has an Initial Asset Investment of $306,600,and

question 62

Multiple Choice

A 4-year project has an initial asset investment of $306,600,and initial net working capital investment of $29,200,and an annual operating cash flow of -$46,720.The fixed asset is fully depreciated over the life of the project and has no salvage value.The net working capital will be recovered when the project ends.The required return is 15 percent.What is the project's equivalent annual cost,or EAC?

• A)-$158,491
• B)-$152,309
• C)-$147,884
• D)-$145,509
• E)-$142,212

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Definitions:

Method of Tenacity

A way of knowing or believing in something based on the stubborn adherence to a belief despite evidence to the contrary.

Fixing Belief

The process of establishing or settling on a particular belief or understanding based on reasoning, evidence, or persuasion.

Dichotomous Conclusions

Outcomes of analysis that divide data or results into two distinct categories or opposite parts.

Critical Theory

A philosophical approach to culture, literature, and art that seeks to confront the social, historical, and ideological forces and structures that produce and constrain it.