EQUIVALENT ANNUAL ANNUITY APPROACH - EAA
One of two techniques used in capital budgeting to differentiate mutually exclusive projects with unstable lives. It computes the steady annual cash flow earned by a project within its lifespan if referring to an annuity. The current worth of the constant annual cash flows is precisely equivalent to the project’s net present value (NPV). In comparing projects with irregular lives, choose the one with higher EAA.
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Noncurrent Liabilities
An obligation which is not required to be fulfilled within 12 months of the balance sheet date. It is also known as long term liability.
Stub Quote
Order to buy or sell a stock above the stock’s market price. Trading companies use these quotes when they don’t want to trade at specif ...
Privately Owned
A company or firm that is not traded publicly on a securities exchange.
Love Money
Capital or seed money given to entrepreneur, from family and friends, in order to start a business. The decision to loan money and the terms of the ...
UGX
Ugandan Shilling is the national currency of Uganda and is designated with the abbreviation UGX.
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