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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

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Lectures in Engineering Economy

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    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

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