A METHOD TO EVALUATE INVESTMENT PROJECTS IN UNDERDEVELOPED COUNTRIES.
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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The evaluation of proposed projects for changes in the transportation networks of underdeveloped countries is examined by using a benefit-cost method of analysis. The benefits of investment projects are evaluated through the use of a linear program model which minimizes the cost of production for critical commodity goals. The constraints for the linear program are obtained through the use of input-output systems and multi-regional programming. A present value formulation is used to compare the results of a least investment sequence to all other feasible sequences. The use of the procedure recommended results in the identification of a feasible investment sequence which will result in the achievement of the required production goals. The results of the procedure can be explained in physical terms to identify the reasons for the differences in the resulting present value of the various investment sequences. Author
- Economics and Cost Analysis