Sensitivity analysis of EAC's robustness. (equivalent annual cost): An article from: Engineering Economist
Book Details
Author(s)Ted G. Eschenbach, Alice E. Smith
ISBN / ASINB00091YPFG
ISBN-13978B00091YPF4
AvailabilityAvailable for download now
Sales Rank12,745,857
MarketplaceUnited States 🇺🇸
Description
This digital document is an article from Engineering Economist, published by Institute of Industrial Engineers, Inc. (IIE) on March 22, 1992. The length of the article is 3093 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the author: Equivalent annuities are often used to compare mutually exclusive alternatives with unequal lives. This comparison assumes identical repetitions until a horizon equal to the least common multiple of the lives. Our paper examines the robustness of the equivalent annual cost (EAC) measure as the identical repetition assumption is violated, considering the following: premature project terminations, subsequent cost changes, differing discount rates, projected salvage values, and the amount and profile of annual costs. The paper concludes with a relative sensitivity analysis that highlights the impact these variables have on potential decisions.
Citation Details
Title: Sensitivity analysis of EAC's robustness. (equivalent annual cost)
Author: Ted G. Eschenbach
Publication:Engineering Economist (Refereed)
Date: March 22, 1992
Publisher: Institute of Industrial Engineers, Inc. (IIE)
Volume: v37 Issue: n3 Page: p263(14)
Distributed by Thomson Gale
From the author: Equivalent annuities are often used to compare mutually exclusive alternatives with unequal lives. This comparison assumes identical repetitions until a horizon equal to the least common multiple of the lives. Our paper examines the robustness of the equivalent annual cost (EAC) measure as the identical repetition assumption is violated, considering the following: premature project terminations, subsequent cost changes, differing discount rates, projected salvage values, and the amount and profile of annual costs. The paper concludes with a relative sensitivity analysis that highlights the impact these variables have on potential decisions.
Citation Details
Title: Sensitivity analysis of EAC's robustness. (equivalent annual cost)
Author: Ted G. Eschenbach
Publication:Engineering Economist (Refereed)
Date: March 22, 1992
Publisher: Institute of Industrial Engineers, Inc. (IIE)
Volume: v37 Issue: n3 Page: p263(14)
Distributed by Thomson Gale
