Capital Budgeting: The Equivalent Annual Cost Method

Professor David Hillier, University of Strathclyde;
Short videos for my students

[nandiniagarwal]

Brilliant explanation, thanks so much!

[prathamsharma]

sir, what if I have to calculate the EAC for the second year, where maintenance is 2, 000 and salvage is 1, 500. do we find the P.V of opportunity cost as 2500/(1.15*1.15) or 2500/1.15 ??

[fardinshahriarshuvo]

Thank You So Much Sir :)
Just Grateful.... :) :) :)