Engineering Economic Analysis

~ _. .__ u _. .... --.-. ..- ~,....-_._..- Selecting an Interest Rate 493 From the viewpoint of the town, the project is still a ...

-, 494 ECONOMIC ANALYSISIN THE PUBLIC SECTOR No Time-Value-of-Money Concept Ingovernment, monies are obtained through taxation a ...

_..---- -.. -....-. 1\ Selecting an Interest Rate 495 cost to a government agency or other governing body, this interest rate is ...

496 ECONOMICANALYSISIN THE PUBLIC SECTOR THE BENEFIT-COST RATIO The benefit-cost ratio was described briefly in Chapter 9 as one ...

----- --- -. .----------- The Benefit-Cost Ratio 497 Using Annu~ Worth AW benefits=225,000+300,000(AIF,8%, 30) = $227,600 AW cos ...

-- -- - - _.-- -- ----- - - - ----------------------------------------------------------------------------------------- -, 498 E ...

u'. u. Incremental Benefit-Cost Analysis 499 Public Project TABLE 16-2 Example Benefits and Disbenefits for Public Investments N ...

""'- 500 ECONOMIC ANALYSIS IN THE PUBLIC SECTOR worth of costs to form thedenominator.) To form the list thedenominator of t ...

~----- ---....... Incremental Benefit-Cost Analysis 501 Examples 16-4 and 16-5 illustrate the use of the incrementalB/Cratio a ...

] 502 ECONOMIC ANALYSISIN THE PUBLIC SECTOR Step 2 In this optional step we calculate theconventionalB/C ratio for each alt ...

.- ---- Incremental Benefit-Cost Analysis^503 As .an example of these calculations, consider the third increment (I~ II). APla ...

-.. 504 ECONOMIC ANALYSISIN THEPUBLICSECTOR ,Again Alternative ill would be eliminated from further consideration because itsB ...

Other Effects of Public Projects - OTHER EFFECTSOF PUBLIC PROJECTS ,Three areas remain that merit discussion in describing the d ...

....... -, 506 ECONOMIC ANALYSIS IN THEPUBLIC SECTOR Project Politics Another aspect distinguishing government projects from ...

'..- .... .-. -. .. .. .- Other Effectsof Public Projects 507 With this project we examine the effect that varying project lives ...

--.---.--. ... -. --- ---. -. - - -. - --. .- I 508 ECONOMIC ANALYSIS IN THE PUBLICSECTOR different values and views spendin ...

... ou. .- ., ..---- Summary 509 · Business leaders in the municipalitieswhere the two facilities would be constructed are in fa ...

510 ECONOMIC ANALYSISIN THE PUBLIC SECTOR 1 makers than for those in the private sector. Another difference between the public a ...

Problems 511 With interest at 7%, what is the benefit-cost ratio for this project? (Ans~er: 0.51) -11 A government agency has es ...

512 ECONOMIC ANALYSIS IN THE PUBLIC SECTOR I which alternative should be recommended. Assume that projec~ life is 45 years andi ...