equivalent annual cash flow
Definition
The required cash flow for the return on an annuity to be the same as the return of another investment. It is computed as
Equivalent annual cash flow = (a * discount rate) / ( 1 - (1+discount rate)-n)The required cash flow for the return on an annuity to be the same as the return of another investment. It is computed as
Equivalent annual cash flow = (a * discount rate) / ( 1 - (1+discount rate)-n)