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:

Vacation Time

Allocated time off work provided by employers to employees for rest and recreation, often paid.

Maximum Amount

The highest possible sum or total that can be achieved, allowed, or allocated in a specific context.

Unemployment Compensation

Money paid by the government to unemployed workers who meet certain eligibility requirements.

Salaried Quarters

A housing or lodging provision as part of an employment compensation package, often found in academic, military, or corporate settings.