FINANCIAL INVESTMENT TECHNIQUES

HIGHWAY ENGINEERING INVOLVES THE INVESTMENT OF LARGE SUMS OF MONEY TO ACHIEVE SPECIFIED PURPOSES FOR LONG PERIODS OF TIME. THE FINANCIAL EVALUATION OF SUCH PROJECTS SHOULD THEREFORE TAKE ACCOUNT OF THE TIME VALUE OF MONEY. DISCOUNTED CASH FLOW, IN ONE OR OTHER OF ITS FORMS, IS THE TECHNIQUE BEST SUITED TO MEETING THIS NEED. IN THIS PAPER, THE VARIOUS METHODS OF FINANCIAL EVALUATION- NET PRESENT VALUE, DCF RATE OF RETURN AND EQUIVALENT ANNUAL COST (SIMILAR TO LOAN CHARGES)- ARE EXPLAINED. THEIR APPLICATION TO SOME HIGHWAY ENGINEERING PROBLEMS IS DISCUSSED AND A PLEA IS MADE FOR THE USE OF THE EVALUATION DATA AS A BASIS FOR EXPENDITURE CONTROL, ESPECIALLY IN THE IMPLEMENTATION STAGES OF PROJECTS. /TRRL/

  • Availability:
  • Corporate Authors:

    Whitehall Technical Press Limited

    Wrotham Place
    Wrotham, Sevenoaks, Kent ME14 1PE,   England 
  • Authors:
    • Mcewan, W J
  • Publication Date: 1972-7

Media Info

  • Features: Figures;
  • Pagination: p. 15-9
  • Serial:
    • Highway Engineer
    • Volume: 19
    • Issue Number: 7
    • Publisher: Whitehall Press Limited
    • ISSN: 0306-6452

Subject/Index Terms

Filing Info

  • Accession Number: 00201092
  • Record Type: Publication
  • Source Agency: Transport and Road Research Laboratory (TRRL)
  • Files: TRIS
  • Created Date: May 15 1974 12:00AM