六、经济评估的基本概念.ppt

4.Specify the minimum attractive rate of return. 5. Establish the criterion for accepting or rejecting a proposal, or for selecting the best among a group of mutually exclusive proposals, on the basic of objective of the investment. 6. Perform sensitivity or uncertainty analysis. 7. Accept or reject a proposal on the basic of the established criterion. The period of time to which the management of a firm or agency wishes to look ahead is referred to as the planning horizon. Since the future is uncertain, the period of time selected is limited by the ability to forecast with some degree of accuracy. For capital investment, the selection of the planning horizon is often influenced by the useful life of facilities, since the disposal of useable assets, once acquired, generally involves suffering financial losses. Let Ct,x be the annual cost at the end of year t for the same investment project x. The net annual cash flow is defined as the annual benefit in excess of the annual cost, and is denoted by At,x at the end of year t for an investment project x. Then, for t = 0, 1... n： At,x = Bt,x - Ct,x Where A is positive, negative or zero depends on the values of Bt,x and Ct,x ,both of which are defined as positive quantities. Once the management has committed funds to a specific project, it must forego other investment opportunities which might have been undertaken by using the same funds. The opportunities cost reflects the return that can be earned from the best alternative investment opportunity foregone. 1、抄写单词并翻译 economic evaluation, opportunity cost , financial investment, investment consideration, decision maker, net annual cash flow, Capital project, socially desirable programs, The Office of Management and Budget, Government agency * * * * Unit Six Basic Concepts of Economic Evaluation A systematic approach for econom