EAC Calculator

Written by:Abraham A.
Location:DCF Analysis

Finance.ThinkAndDone.com provides you online and windows calculators to calculate equivalent annual cost EAC from a series of cash flows and the discount rate when NPV is unknown. It also calculates EAC when NPV is known and the discount rate is provided. equivalent annual cost EAC method is used to find acceptability of a capital budgeting project when the size and lives of project are not the same. This helps an analyst find an annual cost amount that each of the projects is worth at the discount rate.

Location: DCF Analysis

EAC Calculator [NPV unknown]

Developed by:Emma A.
Location:Financial Calculators
type in the authorization code in the box located below:

Results

Net Present Value | NPV = -496.78
Equivalent Annual Cost | EAC = -199.76

Input Data

Please enter the net cash flows separted by spaces in the box:

Please enter the aka discount rate:  

EAC Calculator [NPV Known]

type in the authorization code in the box located below:

Results

Input Data

Instructions

To use this online calculator to calculate EAC, you need to type in the seris of net cash flows along with the discount rate. Assume we have these as our cash flows -360 -55 -55 -55 where all amounts represent costs and the discount rate is 10%. Following are the steps needed to use this calculator

  • Firstly, enter the series of net cash flows in the text box each separated by a space such as -360 -55 -55 -55
  • Then type in 10 for the discount rate
  • Finally a click on the CALCULATE button will show the EAC of -199.76