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 EQUI VEST EQUI VEST Express EQUI VEST AXA Equitable 2018

2018-2025 Form

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in this video we'll introduce the idea of equivalent annual cost and you will use this idea moving forward in this course so it's important that you understand the concepts described in this particular video in subsequent videos will actually solve problems but this video will we'll just talk about the idea of equivalent annual cost equivalent annual cost for the purpose of engineering economics is usually split into two components the first component relates to our investment in capital and that relates to the purchase price of whatever asset we buy as well as the salvage value that we receive at some point down the road and it's probably best described with a cash flow diagram so simply put at some point time T equal to zero we purchase an asset for P and at some point in the future we sell it for value of s and the whole point behind equivalent annual cost is that I would like to convert these cash flows this investment in this return into an equivale

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