ABSTRACT
Along with comparing alternatives on the basis of their net present worth, members of firms and individuals are able to compare alternatives based on their equivalent uniform annual worth (EUAW). This chapter introduces procedures for calculating the EUAW of alternatives; and using EUAW calculations to compare alternatives; and incorporating salvage values, trade-in values, and sunk costs into EUAW calculations. This chapter also covers calculating the equivalent uniform annual cost of perpetual life alternatives and provides example problems comparing alternatives on the basis of their EUAW.
