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By Business Compass LLC

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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.


Compare 2 machines A and B


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


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 in Version 3.0

Improved user interface


iPhone Screenshot 1
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iPad Screenshot 1
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This app is designed for both iPhone and iPad
  • £2.29
  • Category: Finance
  • Updated:
  • Version: 3.0
  • Size: 0.1 MB
  • Language: English
  • Developer:

Compatibility: Requires iOS 3.1.3 or later. Compatible with iPhone, iPad, and iPod touch.

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