• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Equivalent Annual Cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Equivalent Annual Cost

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 7, 2013 at 12:35 pm #119458
    mohapi
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    When calculating EAC ,we take the lower NPV and divide by the annuity factor. so which one is the lower between these:
    -200,-90,-78,-16 and between these -102,-147,-56,18? EXAMPLE, RIDAG CO,QUESTION (b)
    please help it gives problem.

    March 9, 2013 at 11:54 am #119543
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    I am sorry, but I don’t understand your question!

    If you are talking about the replacement problem, then we for each replacement period we calculate the NPV and then divide by the annuity factor for the replacement period to get the equivalent annual cost.
    The best replacement period is the one with the lowest equivalent annual cost.

    You refer to an example called Ridag. Please tell me where this question is and I will try to help more.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • amaanalli on Governance – ACCA Strategic Business Leader (SBL)
  • nabeelafatima on Using Information Systems – ACCA Performance Management (PM)
  • John Moffat on Irrecoverable Debts and Allowances Example 3 – ACCA Financial Accounting (FA) lectures
  • Fangzi on The cost of capital (part 1) – ACCA (AFM) lectures
  • Coffeeice6 on What is Assurance? – ACCA Audit and Assurance (AA)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in