equivalent annual cost

felixfperez | 02:13 Wed 06th Dec 2006 | Business & Finance

3 Answers

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

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it either 20,000 or maybe 21356.95 or 22,618.83 or when i think about it it could be 25,237.66

chazza

If this is homework, you're really on the wrong site

redcrx

a thrupenny bit should cover it. Keep the change

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