Some of the key points in this chapter are:
• projects must be evaluated on strategic, technical and economic grounds;
• economic assessment involves the identification of all costs and income over the lifetime of the system, including its development and operation and checking that the total value of benefits exceeds total expenditure;
• money received in the future is worth less than the same amount of money in hand now, which may be invested to earn interest;
• the uncertainty surrounding estimates of future returns lowers their real value measured now;
• discounted cash flow techniques may be used to evaluate the present value of future cash flows taking account of interest rates and uncertainty;
• cost-benefit analysis techniques and decision trees provide tools for evaluating expected outcomes and choosing between alternative strategies.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.