EAC Advanced Calculator

EAC Calculator

EAC (Equivalent Annual Cost) Calculator

EAC Advanced Calculator

Component Description
Net Present Value (NPV) The present value of cash flows generated by a project after accounting for the cost of capital.
Capital Expenditure The initial cost of investment in a project.
Life of the Project The duration over which the project will generate cash flows.
Equivalent Annual Cost (EAC) The annual cost of owning and operating an asset over its entire lifespan.
Formula EAC = NPV / Annuity Factor, where Annuity Factor = (1 – (1 + r)^-n) / r, and r is the discount rate, n is the number of years.
Purpose Used to compare the cost-effectiveness of different projects or investments with varying lifespans and costs.

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