Abstract

The Australian Transport Council (ATC) have identified that the benefit cost ratio (BCR), the net present value (NPV), and first-year rate of return (FYRR) decision criteria are appropriate inputs to project prioritization, mutual exclusive project selection, and optimal timing, respectively. This article suggests the net benefit investment ratio (NBIR), the incremental net benefit investment ratio (INBIR), and the internal rate of return (IRR) subject to decision criteria incorporating the marginal project as alternatives to those proposed by the ATC. The proposed decision criteria aim to reduce the impact of uncertainty surrounding discount rates and opportunity costs of capital, hence improving the quality of the quantitative inputs provided to decisionmakers.

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Additional Information

ISSN
2157-328X
Print ISSN
0041-1612
Pages
pp. 473-487
Launched on MUSE
2012-10-09
Open Access
No
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