Proposed Modifications to the Cost‐Benefit Analysis Decision Criteria for Road Project Evaluation to Improve Decisionmaking

Wayne Davies

Transportation Journal, 2012, vol. 51, issue 4, 473-487

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.

Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.5325/transportationj.51.4.0473

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:transj:v:51:y:2012:i:4:p:473-487

Access Statistics for this article

More articles in Transportation Journal from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().