A 5-year project has an initial fixed asset investment of $622,600, an initial net working
capital investment of $14,900, and an annual operating cash flow of -$51,480. 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 12 percent.
What is the project's equivalent annual cost, or EAC?
