Annualisation

From Glossary for Health Technology Lifecycle by EuroScan
Revision as of 11:57, 7 November 2023 by Editor iHTS (talk | contribs) (Created page with "A method for converting capital cost into an equivalent annual cost, calculated on the basis of the lifespan, initial cost (acquisition cost) and end-of-lifespan value of the equipment, and the interest rates on the invested capital. '''Note:''' This method can also be applied to income. '''Alternate spelling:''' annualization [http://htaglossary.net/annualisation]")

(diff) ← Older revision | Approved revision (diff) | Latest revision (diff) | Newer revision → (diff)

A method for converting capital cost into an equivalent annual cost, calculated on the basis of the lifespan, initial cost (acquisition cost) and end-of-lifespan value of the equipment, and the interest rates on the invested capital.

Note: This method can also be applied to income.

Alternate spelling: annualization

[1]