Examlex
The double-declining-balance method is an accelerated method of depreciation.
Equivalent Annual Annuity
A financial calculation used to compare projects with different lifespans, by converting their net present values into equal yearly payments.
Cost of Capital
The essential yield required to validate the investment in a project involving capital budgeting, like erecting a new manufacturing plant.
Mutually Exclusive
Situations or options that cannot occur or be chosen at the same time, often requiring a choice to be made between them for decision-making purposes.
Replacement Chain
A method for analyzing and comparing the economic life of alternative investment projects by equalizing their life spans through repeated investments.
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