EQUIVALENT ANNUAL ANNUITY APPROACH - EAA
One of two techniques used in capital budgeting to differentiate mutually exclusive projects with unstable lives. It computes the steady annual cash flow earned by a project within its lifespan if referring to an annuity. The current worth of the constant annual cash flows is precisely equivalent to the project’s net present value (NPV). In comparing projects with irregular lives, choose the one with higher EAA.
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Term
Lifespan of an asset or a liability in which its value is expected to either increase or decline, depending on its nature.
Time ...
Social Networking
Social networking is networking through the use of social media with the purpose of socialization, business, or both. It basically establishes conn ...
Rural Housing Service - RHS
A division in the U.S. Department of Agriculture responsible for managing programs that focus on rural housing and community service facilities, an ...
Interest Equalization Tax
Tax on foreign stocks and bonds acquired by American. Levied in 1963, it is designed to lessen the US balance of payments deficit by deterring inve ...
Bill Of Materials - BOM
List of raw materials or any things that are required to build a product. It is usually in the hierarchical format. Topmost level showing the end p ...
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