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- A five-year project has an initial fixed asset investment of $300,000, an initial NWC investment of $28,000, and an annual OCF of – $27,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 11%, what is this project's equivalent annual cost, or EAC? (Negative answer should be indicated by a minus sign. Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Equivalent annual cost %24A five-year project has an initial fixed asset investment of $280,000, an initial NWC investment of $24,000, and an annual OCF of -$23,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent, what is this project's equivalent annual cost, or EAC? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Equivalent annual costA five-year project has an initial fixed asset investment of $360, 000, an initial NWC investment of $40,000, and an annual OCF of -$39,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent, what is this project's equivalent annual cost, or EAC? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Equivalent annual cost $
- A project with a life of 11 has an initial fixed asset investment of $42,000, an initial NWC investment of $4,000, and an annual OCF of -$64,000. The fixed asset is fully depreciated over the life of the project and has no salvage value.If the required return is 19 percent, what is the project's equivalent annual cost, or EAC?A project with a life of 5 has an initial fixed asset investment of $42,000, an initial NWC investment of $4,000, and an annual OCF of -$64,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 13 percent, what is the project's equivalent annual cost, or EAC? Multiple Choice O O O о о $-53,786.35 $-76,461.21 $-80,284.27 $-64,992.03 $-72,638.15A project with a life of 10 has an initial fixed asset investment of $25,620, an initial NWC investment of $2,440, and an annual OCF of −$39,040. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 10 percent, what is the project's equivalent annual cost, or EAC? Show equations using excel.
- A project with a life of 8 has an initial fixed asset investment of $9,660, an initial NWC investment of $920, and an annual OCF of -$14,720. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent, what is the project's equivalent annual cost, or EAC? Multiple Choice $-16,774.99Consider a project with the following information: Initial fixed asset investment = $550,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price $54; variable costs = $35; fixed costs = $228,000, quantity sold = 116,000 units; tax rate = 23 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) AOCFIAQ 9.24Consider a three-year project with the following information: initial fixed asset investment = $710,000; straight-line depreciation to zero over the 5-year life; zero salvage value; price = $39.39; variable costs = $28.31; fixed costs = $332,000; quantity sold = 87,000 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) AOCF/AQ
- You are considering an investment proj ect with the following financialin formation:(a) Required investment = $500,000(b) Project life= 5 years(c) Salvage value= $50,000(d) Depreciation method = s traight-line depreciation (no ha lf-year convention)(e) Unit price = $40(f) Unit variable cost = $18(g) Fixed annual cost = $230.000(h) Annual sales volume= I 00,000 units(i) Tax rate = 35%G) MARR = 15%Suppose the company is most concerned about the impact of its price estimate on the projects rate of return. How would you address this concernConsider a four-year project with the following information: initial fixed asset investment = $480,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $31; variable costs = $24; fixed costs = $200,000; quantity sold = 89,000 units; tax rate = 34%. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) AOCF/AQGenoa Company is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero salvage value, and would require additional net operating working capital that would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's life. What is the project's NPV? WACC 14.57% Net investment in fixed assets (basis) $75,000 Required net operating working capital $33,000 Straight-line depreciation rate 33.333% Annual sales revenues $81,000 Annual operating costs (excl. depr.) $35,000 Tax rate 35.0% $3,018 $2,974 $3,009 $2,712 $2,823.05