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First step is to identify cash flows as either benefits, disbenefits, or costs

First step is to identify cash flows as either benefits, disbenefits, or costs. Benefits(B)--Advantages to the people. Disbenefts--Disadvantages to the people. Costs--Expenditures by the government. B - D. Conventional B/C ratio =. C. B/C Classifications.

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Different Life Alternatives

(1) Least common multiple(LCM) of lives. (2) Specified planning period. Different Life Alternatives. Must compare alts for equal service ( i.e. alts must end at the same time ). Two ways to compare for equal service:. (The LCM procedure is used unless otherwise specified).

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Compare alts - PowerPoint PPT Presentation

First step is to identify cash flows as either benefits, disbenefits, or costs

Different Life Alternatives