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Net Present Value (NPV) and Internal Rate of Return (IRR) have been calculated for both parts, while the Net Benefit over Investment Ratio (NBIR) and the Benefit Cost Ratio (B/C) are indicators only for the latter.
Documents and analyses clarify all the relevant facts that should back the decisions, not limited to the sole aggregate CBA indicators (NPV, NBIR, B/C, and IRR).
NBIR = Discounted Net Benefits/Discounted Capital Costs (4)
The NPVI is simply the NPV divided by investment costs, while NBIR is the equivalent to the ATC definition of the BCR minus the confusion with any other previous definitions.
If both options analysis and prioritization are conducted with the NBIR, the optimal projects may still not be selected.
(6.) The formula for NBIR = formula for [BCR.sub.ATC] as discounted net benefits are assumed to equal discounted benefits minus infrastructure operating costs.
The NBIR of the marginal project can act as a NBIR cutoff value for which other projects can be compared, too.
Optimal timing measures can be used when competing projects have very similar NBIRs, and the delay of a project may be considerably more beneficial to one project compared to the other.
A possible solution would be to compare the increases in NPV of projects with similar NBIRs and capital costs.
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