Equivalent annual benefit

Equivalent annual benefit

The annual annuity with the same value as the net present value of an investment project.
References in periodicals archive ?
Berk and DeMarzo (2007) very briefly introduce the same idea to measure project's profitability and call it "the equivalent annual benefit method" and show how to use it to pick a better project when multiple positive NPV projects have different economic lives.
The equivalent annual cash flow (EACF) method has different versions in corporate finance and asset pricing, such as the equivalent annual cost, the equivalent annuity, the equivalent annual benefits, etc.