Lectures in Engineering Economy
. Major issues. . Engineering Economy/public activities/ 2005 /prof. corrado lo storto. . Framework of benefit-cost analysisValuation of benefits and costsBenefit-cost ratiosIncremental B-C analysis. . Benefit-Cost analysis. The Benefit-cost analysis is commonly used to evaluate public projects.Benefits of a non-monetary nature need to be quantified in dollar terms as much as possible and factored into the analysis.A broad range of project users distinct from the sponsor should be consider29
Lectures in Engineering Economy
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Presentation Transcript
1. Lectures in Engineering Economy Prof. Corrado lo Storto
DIEG, Dept. of Economics and Engineering Management
School of Engineering, University of Naples Federico II
email: corrado.lostorto@unina.it
phone: 081-768.2932
2. Major issues
3. Benefit-Cost analysis
4. Framework of Benefit-Cost Analysis
5. Analyses for Government Agencies and Public Utilities
6. Criteria for judging acceptability of government projects
7. Major difficulties
8. Major difficulties
9. Example
10. Example
11. Example : Problem 1
12. Example: Solution to problem 1
13. Example: Solution to problem 1
14. Benefit-Cost Ratio Criterion
15. Definition of Benefit-Cost Ratio
16. Breakdown of the Sponsor’s Cost
17. Example of B-C Analysis
18. Solution
19. Relationship between B/C Ratio and NPW
20. Incremental Analysis Based on BC(i)
21. Example 2: Incremental Benefit-Cost Ratios
22. Solution
23. Interest rate for government projects
24. The borrowing rate
25. The opportunity cost
26. Comparing alternatives using benefit-cost analysis when receipts and disbursements are known: an example
27. Comparing alternatives using benefit-cost analysis when receipts and disbursements are known: solution to the example
28. Comparing alternatives using benefit-cost analysis when receipts and disbursements are known: solution to the example
29. Comparing numerous alternatives using benefit-cost analysis when receipts and disbursements are known: example
30. Summary
31. Summary