Chapter 15 Proj Eval.pdf - CHAPTER 15 PROJECT EVALUATION CE 305 George List Economic Evaluation \u2022 Costs \u2022 Investment(Capital \u2022 Operating(Annual

Chapter 15 Proj Eval.pdf - CHAPTER 15 PROJECT EVALUATION CE...

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CHAPTER 15 PROJECT EVALUATION CE 305 George List
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Economic Evaluation Costs: Investment (Capital) Operating (Annual) Benefits Revenues Time savings Sale from salvage (retirement) Time, time value of money Costs occur at different points in time Public discount rates Private interest rates Discount rate High: Consume now, don’t save Low: Save for future generations Capital expenditures: Private: Depreciated, amortized Public: Expensed (unless bonds used)
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