Equivalent Annual Cash Flow

Business, Legal & Accounting Glossary

Definition: Equivalent Annual Cash Flow


Equivalent Annual Cash Flow


Full Definition of Equivalent Annual Cash Flow


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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Definition Sources


Definitions for Equivalent Annual Cash Flow are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.