Question

What is equivalent uniform annual cost euac?

Answer 1

In finance, the equivalent annual cost (EAC) is the cost per year of owning and operating an asset over its entire lifespan

Unlike standard life cycle cost analysis, the Estimated Uniform Annual Cost. (EUAC) method expresses life cycle costs as an annualized estimate of cash flow instead of a lumpsum

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Answer 2

The equivalent annual cost (EAC) is the annual cost of owning, operating and maintaining an asset over its entire life. EAC is often used by firms for capital budgeting decisions. Theequivalent annual cost methodology allows a company to compare the costeffectiveness of various assets that have unequal lifespans.