## Equivalent Annual Annuity

The equivalent annual annuity formula is used in capital budgeting to show the net present value of an investment as a series of equal cash flows for the length of the investment. The net present value(NPV) formula shows the present value of an investment that has uneven cash flows

## $$\frac{\frac{r}{p}}{1-[1+r{]}^{\mathrm{-n}}}$$

Here,p=net present value,r=rate per period,n=number of period

ENTER THE VARIABLES TO BE USED IN THE FORMULA