Equivalent Annual Cost – EAC
Definitions
1
Posts
1
Posters
111
Views
-
Equivalent annual cost (EAC) is the annual cost of owning, operating, and maintaining an asset over its entire life. EAC is often used by firms for capital budgeting decisions, as it allows a company to compare the cost-effectiveness of various assets that have unequal lifespans.
Explore More Definitions
Browse our collection of 300,000+ community-written definitions