Direct losses are measured or estimated statistically or by a priori judgment. Actuarial fire-loss data…

The identification of benefits and costs depends on the particular project under consideration. Thus, in…

Benefit-cost analysis, also referred to as cost-benefit analysis, is a method of comparison in which…

Rate of return is, by definition, the interest rate at which the present worth of…

To compare alternatives by annual cost, all cash flows are changed to a series of…

In a present worth comparison of alternatives, the costs associated with each alternative investment are all converted…

Provision for inflationmay be made in two ways: (1) estimate all future costs and benefits…

The term discount rate is often used for the interest rate when comparing alternative projects or strategies.…

Most decisions are based on economic criteria. In-vestments are unattractive, unless it seems likely they…

Additional concepts involved in interest calculations include continuous cash flow, capitalized costs, begin-ning of period payments,…