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Ebooks / Corporate Finance Part 1 / Chapter 8 of 20

Equivalent Annual Annuity (EAA) Approach

Financial AnalysisMarch 20, 2012 · 1 min read

The EAA value represents the required size of an annual payment over an asset’s life to make the present value of the project’s operating cash flows equal to the net present value, when the cost of capital is applied as the discount rate.

EAA Process

Free calculatorNPV CalculatorDiscount a series of cash flows to present value.