What Is the Equivalent Annual Cost (EAC)

What is the equivalent annual cost (EAC) ?

A) annual cost of the initial investment in an asset spread over its economic life
B) average annual cost of owning and operating an asset over its economic life
C) the market cost of replacing the service provided by an asset
D) the sum of the asset's depreciation and its operating costs in any given year
E) the difference between the profits generated by an asset and the cost of operating it

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