Equivalent Annual Cost

Alternative label: 
EAC
Definition: 

The cost per year of implementing a NWRM over its entire lifespan. EAC is used when comparing NWRMs of unequal lifespans. It is estimated through listing all capital expenditures and when they are incurred; calculating the net present value of expenditures, once discounted; and converting this net present value into an annuity

Links: 
Relation type: 
Related
Relation type: 
Related
Relation type: 
Broader
Relation type: 
Related
Concept: 
Last updated: 04 Mar 2015 | Top