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What Is the Equivalent Annual Cost for a Project That

Question 111

Multiple Choice

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 percent?


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

Correct Answer:

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