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Single payment present worth

Table 1. Single Payment Present Worth Factors

Example to illustrate the sensitivity to discount/interest rates

Uniform series present worth, useful when operating costs and recurring benefits sometimes occur in constant or uniform amounts year after year.

Table 2.   Uniform-Series Present Worth Factors

Capitalized value

A Cost Comparison Illustration:

Alternative C

Effect of Inflation on Present Value Analysis

Benefits

BENEFIT-COST Comparison

Comparison Measures for alternatives that have the same intangible effects

B/C ratio depending on how negative effects are counted

Treatment of Uncertainty

Internal Rate of Return:

Which 520 bridge alternative should (if any) be built? (in this example the $ figures are ridiculously low!!!)

Assessing the value of the negative effects of closing the trestle bridge: Method 1-Óthe worthÓ of having the bridge.