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Equivalent annual cost (EAC) is the annual cost of owning, operating, and maintaining an asset over its entire life. Firms often use EAC for capital budgeting decisions, as it allows a company to compare the cost-effectiveness of various assets with unequal lifespans. See more begin {aligned} &\text {EAC} = \frac { \text {Asset Price} \times \text {Discount Rate} } { 1 - ( 1 + \text {Discount Rate})^ {-n} } \\ &\textbf {where:} \\ … See more WebJun 24, 2016 · Extended coverage (EC) insurance is supplemental coverage added to a … paraphrase all text
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