Business, Legal & Accounting Glossary
The required cash flow for the return on an annuity to be the same as the return of another investment. It is computed as
Equivalent annual cash flow = (a * discount rate) / ( 1 – (1+discount rate)-n)
where a= cash flow, n= number of periods.
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This glossary post was last updated: 20th November, 2021 | 0 Views.