Equivalent annual cost

Related BrainMass Solutions

• Equivalent Annual Cost and Minimum Attractive Rate of Return

  230535 Equivalent Annual Cost and Minimum Attractive Rate of Return Compare the equivalent annual costs for 2 pumps. The minimum attractive rate of return is 12%.

• Equivalent Annual Costs and Discount Rates

  annual cost $22,638 Equivalent annual cost 80% The equivalent annual cost of a polisher is determined.

• Alternative and Equivalent Annual Cost Method

  In equivalent annual cost (EAC) method, we find the present value of all the costs and then convert this present value to an annuity which has the same present value. The annuity amount is called as equivalent annual cost (EAC).

• Calculating Annual Cost

  on which plan has the lowest equivalent annual cost, she should choose the five-year warranty.

• Selecting Among Alternative Equipment

  Dividing this by PVIFA, gives us the Equivalent Annual Cost Equivalent Annual Cost= $5,132.90 =$22,355.3 / 4.3553 Since the equivalent annual cost of new equipment = $5,132.90

• Equivalent Annual Cost

  Equivalent annual cost= $___________ EAC= Cost * ((DR/(1-(1+ DR)^-DR))) + Cost per Year EAC = 21000*((15%/(1-(1+15%)^-15%))) + (-31000) EAC = - $38, 355.57 The solution computes equivalent annual cost of a precision lathe.

• Equivalent Annual Cost

  What are the equivalent annual costs of the Econo-Cool and Luxury Air models? The equivalent annual cost is the cost per year to operate the model.

• The equivalent uniform annual cost per machine

  (8%,5) 3.993 Equivalent Annual Cost $23,846.47.

• Calculating equivalent annual cost: aging storage tank

  The solution calculates equivalent annual cost for aging storage tanks.

• The equivalent annual cost of the shaft in $ per year

  If the annual interest rate is 8.75%, determine a. The equivalent annual cost of the shaft in $ per year b. Corresponding production cost in $ per tonne mined a.