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:

Assimilation

The cognitive process in which new information is integrated into existing schemas, beliefs, or understanding.

Suck Reflexively

An innate reflex in infants enabling them to suckle for feeding.

Mental Structure

The organization and framework of the mind that influences how individuals think, perceive, and understand the world.

Accommodation

In cognitive theory, the process of adjusting existing cognitive schemas to incorporate new information.