Other Analysis Techniques
{"Image DocumentName": "Other Analysis Techniques", "Image ImageDescription": "Future worth analysis is equivalent to present worth analysis; the best alternative one way is also best the other way. There are many situations where we want to know what a future situation will be, if we take some particular course of action now. This is called future worth analysis. Since we can write. PW of cost \uf0a3 PW of benefit or. EUAC \uf0a3 EUAB we can equivalently write. (PW of benefit)/PW of cost \uf0b3 1, or. EUAB/EUAC \uf0b3 1. Economic analysis based on these ratios is called benefit-cost ratio analysis. Payback period is an approximate analysis method. For example, if a  1000 investment today generates  500 annually in savings, we say its payback period is 1000/500 = 2 years. Sensitivity analysis identifies how sensitive economic conclusions are to the values of the data, and allows making decisions for an entire range of the data. Breakeven analysis is closely related to sensitivity analysis, and determines conditions when two alternatives are equivalent (as well as when each is better than the other). It can be viewed as a type of sensitivity analysis.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}