The Equivalent Annual Annuity (EAA) for an investment is the level annuity over the investment's life that has a present value equal to the investment's net present value. The EAA calculator tool is used to calculate the net present value of an investment as a series of equal cash flows for the length of the investment.
Formula:
C = r × (NPV) / 1 - (1 + r)-n
Where,NPV - Net Present Value,
r - Rate Per Period,
n - Number of Periods
C - Equivalent Annuity Cash Flow