General Concepts
The Meaning of Equivalence
In order to evaluate investment alternatives, sums of money produced at different points in time must be compared.…
September 1, 2021 · Taylor EmmaAuthor: Taylor Emma
A senior editor for The Mars that left the company to join the team of SenseCentral as a news editor and content creator. An artist by nature who enjoys video games, guitars, action figures, cooking, painting, drawing and good music.
General Concepts
Factor Formulas
The table below summarizes the equivalency factors . The Name column shows the traditional names for the factors. Each factor…
September 1, 2021 · Taylor EmmaGeneral Concepts
Equivalent annual cost
In finance, the equivalent annual cost (EAC) is the cost per year of owning and operating an asset over its…
September 1, 2021 · Taylor EmmaGeneral Concepts
cost dominated cash flow diagram
Cash Flow Cash flow is the sum of money recorded as receipts or disbursements in a project’s financial…
September 1, 2021 · Taylor EmmaGeneral Concepts
WORKEDOUT PROBLEMS
Single-Payment Compound Amount A person deposits a sum of Rs. 20,000 at the interest rate of 18% compounded…
September 1, 2021 · Taylor EmmaGeneral Concepts
Annual equivalent method
In most of the practical decision environments, executives will be forced to select the best alternative from a…
September 1, 2021 · Taylor EmmaGeneral Concepts
FUTURE WORTH METHOD
· In this method, the future worth of various alternatives will be computed. Then, the alternative with the maximum…
August 31, 2021 · Taylor EmmaGeneral Concepts
Effective Interest Rates
Nominal, Period and Effective Interest Rates Based on Discrete Compounding of Interest · Usually, financial agencies report the interest…
August 31, 2021 · Taylor EmmaGeneral Concepts
Uniform Gradient Uniform Series
The Uniform Gradient Uniform Series (UGUS) factor calculator computes the change in the amount of an account that has uniform…
August 31, 2021 · Taylor EmmaGeneral Concepts
Uniform Annual Series and Future Value
Uniform annual series and future value Suppose that there is a series of “n” uniform payments, uniform in…
August 31, 2021 · Taylor Emma