Technology Assessment

Net present value what cash payment today would be

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Unformatted text preview: ve and the proposed intervention or alternatives Externalities: Benefits: training, technology spin- off, community benefits Costs: congestion, environmental damage Risks: disease, accident, natural disaster 2: catalog costs, benefits, and risks of the proposed action or of alternative approaches to the objective Begin with flow of actual cash Look for ways to quantify: Medical costs Ecological services Hours of transport time saved Hedonic pricing: factory building Price of real estate up and down- wind non- monetary quantification: species saved, lives lost 3: quantify whatever can be quantified and list separately what can’t be quantified. 4: take into account the passage of time. Benefits today are more desirable than benefits later Costs today are less desirable than costs later Discount rate: the interest rate used for this comparison Higher discount rate means less concern for future costs and benefits Any positive discount rate results in neglect of future generations How much do you value a dollar you receive this year compared to a dollar you will receive next year Rate of Return: What rate of interest would be equivalent...
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