Investments of Unequal Lives: The Equivalent Annual Cost (EAC) Method

[@matthewheap341]

Great explanation, a good simple example and very concise and clear in the presentation, thank you!

[@mapa5497]

But sir if we think by considering present annuity factor of $65, don't you think you indirectly computed IRR of 1st option, and this was compared with yearly investment of 2nd option..

[@mapa5497]

Way too knowledgeable..