| 单词 |
equivalent annual cost |
| 释义 |
Equivalent annual cost
Equivalent annual costThe cost per year of owning an asset over its entire life.Equivalent Annual CostThe cost of an asset over the time it is held, expressed in annualized terms. It is calculated as:
EAC = (Price + Discount Rate) / (1 - (1 + Discount Rate)-Years Held)
The EAC may be compared to the revenue that the asset produces in a year to determine whether acquiring the asset is cost effective.AcronymsSeeEAC |
| 随便看 |
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