The advent of megaprojects is exacerbating the need for a comprehensive tool for decision making. Financial resources are scarce and cost-benefit analysis (C BA) can help decision makers select the most efficient allocation of these resources. This paper addresses CBA as an evaluation tool and its major weaknesses. We conclude that the treatment of residual value (RV) is inadequate and needs further research. RV represents the value of the infrastructure at the end of its project lifetime and the value that the asset generates over time. The current methods for calculating RV do not properly reflect the true value. (C) 2013 The Authors. Published by Elsevier Ltd.
机构:
Natl Grad Inst Policy Studies, Minato Ku, 7-22-1 Roppongi, Tokyo 1068677, JapanNatl Grad Inst Policy Studies, Minato Ku, 7-22-1 Roppongi, Tokyo 1068677, Japan
机构:
Univ Tokyo, Ctr Spatial Informat Sci, Fac Econ, Bunkyo Ku, Tokyo 1130033, JapanUniv Tokyo, Ctr Spatial Informat Sci, Fac Econ, Bunkyo Ku, Tokyo 1130033, Japan
机构:
Univ Western Australia, Planning & Transport Res Ctr PATREC, M261,35 Stirling Highway, Perth, WA 6009, AustraliaUniv Western Australia, Planning & Transport Res Ctr PATREC, M261,35 Stirling Highway, Perth, WA 6009, Australia
Chi, Sae
Bunker, Jonathan
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机构:
Queensland Univ Technol, Sch Civil Engn & Built Environm, 2 George St, Brisbane, Qld 4000, AustraliaUniv Western Australia, Planning & Transport Res Ctr PATREC, M261,35 Stirling Highway, Perth, WA 6009, Australia