Chapter6TheApplicationofProjectEvaluationMethods.pptVIP

Chapter 6 The Application of Project Evaluation Methods Learning Objectives Explain the principles used in estimating project cash flows. Compare mutually exclusive projects with different lives. Determine when to retire (abandon) or replace assets. Use sensitivity analysis and break-even analysis to analyse project risk. Use decision trees to analyse sequential decisions. Explain the role of qualitative factors in project selection. Explain the effects of resource constraints on project selection. Introduction Practical project evaluation has to accommodate: Uncertainty with respect to cas