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EAC

EAC

       iOS Universal

EAC - Estimated Annual Cost

EAC accepts expenses as input. Expense start time can be supplied. By default expense starts at t=0. Expense can repeat. Expense repetition can be supplied.

EAC computes NPV of expenses. Then, it calculates the EAC of the NPV at a given interest rate.

EAC is applicable to comparing maintenance of machines with unequal lives.

Example:

Compare 2 machines A and B

A:

t=0 expense 15
t=1 expense 4
t=2 expense 4
t=3 expense 4

Interest rate = 10%
NPV = 24.95
EAC = 10.03

B:

t=0 expense 10
t=1 expense 6
t=2 expense 6

Interest rate - 10%
NPV = 20.41
EAC = 11.76

Which machine is better?

Machine A is better than machine B due to lower EAC.

What's new

Improved user interface


Screenshots

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Last changed:
Aug 26, 2010
Category:
Finance
Developer:
Business Compass LLC
Version:
3.0
Size:
0.1 MB

Current Version Average Rating:
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All Versions Average Rating:
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