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#equivalent_annual_cost

Equivalent annual cost

In finance, the equivalent annual cost (EAC) is the cost per year of owning and operating an asset over its entire lifespan. It is calculated by dividing the negative NPV of a project by the "present value of annuity factor":, where

Fri 24th

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Equivalent annual cost Net present value Effective interest rate Capital budgeting Full-time equivalent Index of accounting articles EAC Cost of electricity by source Annual percentage rate Valuation using discounted cash flows
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