Economic Analysis Handbook

• Economic Analysis Handbook
• Distribution List
• Foreword
• Acknowledgements
• Customer Feedback Form
• Table of Contents
• Table of Contents -Cont.
• Table of Contents -Cont.
• Introduction
• Handbook's Purpose
• Why Economic Analysis is Needed
• Policy and Guidance
• Summary
• Summary -Cont.
• The Economic Analysis Process
• Define the Objective
• Generate Alternatives
• Formulate Assumptions
• Formulate Assumptions -Cont.
• Determine Costs and Benefits
• Compare Costs and Benefits and Rank Alternatives
• Perform Sensitivity Analysis
• Fundamental Planning Analysis
• Fundamental Planning Analysis -Cont.
• Fundamental Planning Analysis -Cont.
• Design Analysis
• Preparation and Review Responsibilities
• Lessons Learned from the Process
• Impact of NO EA Submittal
• Basic Economic Analysis Techniques
• Determining the Economic Life
• Economic Life Guidelines
• Understanding Compound Interest and Future Values
• Compound Interest,One Year
• Compound Interest, "N" Years
• Present Value and Cumulative Present Value Factors
• Present Value and Cumulative Present Value Factors -Cont.
• Present Value and Cumulative Present Value Factors -Cont.
• Present Value and Cumulative Present Value Factors -Cont.
• Present Value and Cumulative Present Value Factors -Cont.
• Equivalence
• Savings to Investment Ratio (SIR)
• Savings to Investment Ratio (SIR) -Cont.
• Savings to Investment Ratio (SIR) -Cont.
• The Discounted Payback Period
• The Discounted Payback Period -Cont.
• The Discounted Payback Period -Cont.
• The Discounted Payback Period -Cont.
• The Discounted Payback Period -Cont.
• Methods of Comparison for Type II Economic Analyses
• Net Present Value (NPV) Comparison
• Uniform Annual Cost
• Uniform Annual Cost -Cont.
• Uniform Annual Cost -Cont.
• Uniform Annual Cost -Cont.
• Slippage
• Slippage -Cont.
• Slippage -Cont.
• Efficiency/Productivity to Investment Ratio
• Efficiency/Productivity to Investment Ratio -Cont.
• Efficiency/Productivity to Investment Ratio -Cont.
• Chapter 4 Life Cycle Cost Analysis
• Point of View
• Good Data Means Good Analysis
• One-Time Costs
• One-Time Costs -Cont.
• Residual or Terminal Value
• Recurring Annual Costs
• Recurring Personnel Costs
• Recurring Personnel Costs -Cont.
• State Costs in Constant Dollars of the Base Year
• Cost-Estimating Methods
• Parametric Cost Estimating
• Parametric Cost Estimating -Cont.
• Analogy Method
• Leave A Clear Audit Trail of the Cost Estimates
• Leave A Clear Audit Trail of the Cost Estimates -Cont.
• Leave A Clear Audit Trail of the Cost Estimates -Cont.
• Leave A Clear Audit Trail of the Cost Estimates -Cont.
• Chapter 5 Benefit Analysis
• Direct Cost Savings
• Direct Cost Savings -Cont.
• Efficiency/Productivity Increases
• Efficiency/Productivity Increases -Cont.
• Other Quantifiable Output Measures
• Other Quantifiable Output Measures -Cont.
• Other Quantifiable Output Measures -Cont.
• Other Quantifiable Output Measures -Cont.
• Other Quantifiable Output Measures -Cont.
• Non-Quantifiable Outputs
• Externalities
• Benefit Documentation
• Summary
• Chapter 6 Treatment of Inflation
• Measuring Inflation and Cost Escalation
• Near Term Versus Long Term Escalation
• Near Term Versus Long Term Escalation -Cont.
• Near Term Versus Long Term Escalation -Cont.
• Table 6A Hypothetical Near-Term Escalation Guidance
• Near Term Versus Long Term Escalation -Cont.
• Near Term Versus Long Term Escalation -Cont.
• Treatment of Inflation During the Project Life
• Outlay Dollar Analysis
• Table 6B Outlay Dollar Cash Flow
• Outlay Dollar Analyses
• Summary and Comments
• Summary and Comments -Cont.
• Chapter 7 Sensitivity Analysis
• What is Sensitivity Analyses?
• One Variable Uncertainty Tests
• Figure 7A Example 7A Graph
• One Variable Uncertainty Tests -Cont.
• One Variable Uncertainty Tests -Cont.
• Break-Even Analysis
• Break-Even Analysis -Cont.
• Break-Even Analysis -Cont.
• Figure 7C Cash Flow Diagrams for Example 7D
• Break-Even Analysis -Cont.
• Figure 7D Graph for Example 7D
• Break-Even Analysis -Cont.
• Break-Even Analysis -Cont.
• Two Variable Uncertainty Tests
• Two Variable Uncertainty Tests -Cont.
• Figure 7F Graph Example 7F
• Figure 7G Graph Example 7G
• Operation Compare:Bivariate Break-Even Analysis
• Figure 7H Graph Example 7H
• Expected Value
• Expected Value-Cont.
• Risk Analysis and Monte Carlo Simulation
• Risk Analysis and Monte Carlo Simulation -Cont.
• Figure 7J 7J Solution Tree Diagram
• Operation Widget: Monte Carlo Simulation
• Table 7B,Random Numbers Uniformly Distributed Between Zero and One
• Table 7C MonteCarlo Simulation
• Figure 7K Graph for Example 7K
• Figure 7L Graph for Example 7K
• Figure 7M Graph for Example 7K
• Chapter 8 Documentation Standards
• Documentation Formats and Tools
• The Future of Economic Analysis
• Economic Analysis Submission Outline
• Economic Analysis Submission Outline -Cont.
• Checklist for Analysts and Reviewers
• The Benefit Determination
• The Sensitivity Analysis
• Lessons Learned From Program Budget Reviews
• Lessons Learned From Program Budget Reviews -Cont.
• Appendix A EA Policy Instructions
• Basic Economic Analysis Instructions
• Energy Policy Directives
• Commercial /Industrial Policy Directives
• Information Systems Policy
• Computer Application Instruction
• Appendix B Formats For EA Submissions
• Appendix B Formats For EA Submissions -Cont.
• Appendix B Formats For EA Submissions -Cont.
• Type 1 Economic Analysis Summary of Costs
• Type 1 Economic Analysis Summary of Costs -Cont.
• Type 1 Economic Analysis Summary of Costs -Cont.
• Summary of Outputs For Economic Analysis
• Summary of Outputs For Economic Analysis -Cont.
• Infeasible Alternatives
• Infeasible Alternatives -Cont.
• Appendix C PV Tables and Formulae
• Appendix C PV Tables and Formulae -Cont.
• Appendix C PV Tables and Formulae -Cont.
• Appendix C PV Tables and Formulae -Cont.
• Appendix C PV Tables and Formulae -Cont.
• Appendix C PV Tables and Formulae -Cont.
• Appendix C PV Tables and Formulae -Cont.
• Appendix C PV Tables and Formulae -Cont.
• Graph of Table A Single Amount Discount Factors
• Table C Coversion Table Savings/Investment Ratio to Discounted Payback Period
• Table C Coversion Table Savings/Investment Ratio to Discounted Payback Period -Cont.
• Present Value Formulae
• Present Value Formulae -Cont.
• Present Value Formulae -Cont.
• Appendix D EA For Self-Amortizing Unspecified Minor Milcon Projects
• UMM Projects--General Background
• Economic Analyses in Support of UMM Projects
• Economic Analyses in Support of UMM Projects -Cont.
• Caveat
• Caveat -Cont.
• Cost Analysis for Unspecified Minor Milcon Project P-999
• Cost Analysis for Unspecified Minor Milcon Project P-999 -Cont.
• Other Cosiderations
• Economic Analysis Department of the Navy Investments Summary of Project Costs
• Source/Derivation of Cost Estimates
• Operation and Maintenance Costs
• Annual Costs For The Remaining Two Years
• Annual Costs For The Remaining Two Years -Cont.
• Economic Analysis -Department of the Navy Investments Summary of Project Costs
• Economic Analysis -Department of the Navy Investments Summary of Project Costs -Cont.
• Investment Costs
• Appendix E Guideliness for Energy-Related Analyses
• Introduction
• ECIP and ETAP
• Department of Energy Life Cycle Costing Rules
• Department of Energy Life Cycle Costing Rules -Cont.
• Department of Energy Life Cycle Costing Rules -Cont.
• DOE Rules- Present Worth Formula
• Executive Order 12759-Federal Energy Management
• Executive Order 12759-Federal Energy Management -Cont.
• Executive Order 12759-Federal Energy Management -Cont.
• Energy Conservation Investment Program Guidance
• Energy Conservation Investment Program Guidance -Cont.
• Energy Conservation Investment Program Guidance -Cont.
• Programming Criteria
• Economic Analysis
• Project Documentation
• ECIP Annual Report Summary
• FY 1991 Energy Conservation Investment Program
• Energy Conservation Investment Program Guidance
• Life Cycle Cost Analysis Guidance
• Life Cycle Cost Analysis Guidance -Cont.
• ECIP Life Cycle Cost Analysis Summary
• Energy Conservation Project Types
• ECIP Life Cycle Cost Analysis Summary -Cont.
• Energy Conservation Investment Program Guidance
• Energy Cost Avoidance Program
• Submittal Documentation
• Completion Documentation
• Completion Documentation -Cont.
• Post Construction Validation Report
• Post Construction Validation Report -Cont.
• Simple Economic Analysis
• Energy Prices and Discount Factors for Life-Cycle Cost Analysis
• Preface
• Preface -Cont.
• Notice
• Example of How to Use the Escalation Rates
• Example of How to Use the Escalation Rates -Cont.
• Table Cb-1. Projected Average Fuel Price Escalation Rates
• Table Cb-2. Projected Average Fuel Price Escalation Rates
• Table Cb-3. Projected Average Fuel Price Escalation Rates
• Table Cb-4. Projected Average Fuel Price Escalation Rates
• Table Cb-5. Projected Average Fuel Price Escalation Rates
• Table D. Factors for Updating Appliance Label Values
• Appendix F Family Housing Revitalization
• Introduction
• Economic Analysis (EA) Guidance for Family Housing Revitalization
• Economic Analysis (EA) Guidance for Family Housing Revitalization -Cont.
• Economic Analysis Guidance
• Economic Analysis Guidance -Cont.
• Economic Analysis Guidance -Cont.
• Family Housing Inflation Rates
• Revised Discount Factor
• Economic Analysis (EA) Guidance for Family Housing Revitalization
• Economic Analysis (EA) Guidance for Family Housing Revitalization
• Economic Analysis (EA) Guidance for Family Housing Revitalization
• Economic Analysis format
• Submission Requirements
• Military Family Housing Analysis
• Cash Flow Analysis
• Cash Flow Analyses-Revitalization
• Cash Flow Analyses-Replacement Construction
• Cash Flow Analyses-Direct Compensation
• Cost Elements of The Economic Analysis
• Revitalization Alternative
• Replacement Alternative
• Moving Costs
• Demolition/Direct Compensation
• Demolition/Direct Compensation -Cont.
• Periodic Maintenance, Repair, and Replacement Costs
• Periodic Maintenance, Repair, and Replacement Costs Alternative 2- Revitalization
• Periodic Maintenance, Repair, and Replacement Costs Alternative 3- Replacement
• Appendix G Glossary of Economic Analysis Related Terms
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix G Glossary of Economic Analysis Related Terms -Cont.
• Appendix H Bibliography
• Appendix H Bibliography -Cont.
• Appendix H Bibliography -Cont.
• Appendix H Bibliography -Cont.
• Appendix H Bibliography -Cont.
• Appendix I Index
• Appendix I Index -Cont.
• Appendix I Index -Cont.
• Appendix I Index -Cont.
• Appendix I Index -Cont.

Economic Analysis Handbook