Accession Number : AD0475334


Title :   DISCOUNTING IN MILITARY COST-EFFECTIVENESS STUDIES


Descriptive Note : Master's thesis


Corporate Author : NAVAL POSTGRADUATE SCHOOL MONTEREY CA


Personal Author(s) : Stone, Donald R


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/475334.pdf


Report Date : Jan 1965


Pagination or Media Count : 49


Abstract : Discounting is a means of assigning different weights to cost expected to be incurred in different future time periods. Such costs are a vital element of cost-effectiveness studies, which under present Department of Defense policy provide the primary basis for military procurement and force structure decision making. The discounting process is reviewed, and an attempt is made to identify qualitatively the factors which should determine the discount rate to be used in Department of Defense cost-effectiveness studies. These factors are separated into two groups: those which apply to cost-effectiveness studies of all types of weapons systems, and those which depend upon the type of system being considered. Finally the manner of presenting the results of the discounting process to the decisionmaker is discussed.


Descriptors :   *COST EFFECTIVENESS , *MILITARY PROCUREMENT , DECISION MAKING , ECONOMICS , SENSITIVITY , COSTS , MATHEMATICAL PREDICTION , LOGISTICS


Subject Categories : Logistics, Military Facilities and Supplies


Distribution Statement : APPROVED FOR PUBLIC RELEASE