Economic Evaluation of Facility Investments.pptx

Unit 4 Economic Evaluation of Facility Investments ;Systematic[s?st??m?t?k] adj.有系统的，有规则的；有条不紊的； eg. We apply our unique and systematic approach to cleaning.;Criterion [kra??t?ri?n] n.（批评、判断等的）标准，准则；尺度；判据 复数： criteria [kra??t?r??];exclusive [?k?sklus?v] adj. 专用的；高级的；排外的；单独的;Implicit [?m?pl?s?t] adj.含蓄的; 无疑问的，绝对的;内含的;暗示的 implicitly adv. implicitness n. ;Period [?p?ri?d] n. 时期; （一段）时间; 学时; 句号; 复数：periods Eg. Do you like the period?;in excess of 多于， 超出; Eg. Your heart was beating in excess of 400 beats per minute.;forego [f?r?ɡo, for-] v. 放弃；在……之前 =forgo. ;Envision [?n?v???n] vt.想像，预见，展望; ;Discount [?d?s?ka?nt] v.打折扣，减价出售;减量; 贴现; 贴现率; ;A systematic approach for economic evaluation of facilities consists of the following major steps:;5. Establish the criterion for accepting or rejecting a proposal, or for selecting the best among a group of mutually exclusive proposals, on the basis of the objective of the investment.; It is important to emphasize that many assumptions and policies, some implicit and some explicit, are introduced in economic evaluation by the decision maker. The decision making process will be influenced by the subjective judgment of the management as much as by the result of systematic analysis.;In economic evaluations,project alternatives are represented by their cash flow profiles over then years or periods in the planning horizon.;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 = 0,1,2,…….n.;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. 管理者一旦将资金融入一个具体项目，就必须放弃这笔资金的其他投资机会。 The opportunity cost reflects the return that can be earned from the best alternative investment opportunity foregone. 机会成本反映了从最好的另类投资机遇所能获得的回报。 The for