The annual annuity stream of payments with the same present value as a project's costs is called the project's:

Question

Quizplus · Accepted Answer

Equivalent annual cost (EAC) is used to evaluate the annual cost of owning, operating, and maintaining an asset over its entire life. It's a method of comparing the cost effectiveness of different projects with different lifespans by converting their costs into an equivalent annual amount. This makes it easier to compare the ongoing costs of projects on a like-for-like basis.

The Annual Annuity Stream of Payments with the Same Present