Evaluation There are three: time type, value, efficiency type
Time economic evaluation
Static investment recovery period net cash flow Abs / T first year cumulative net cash flows P = T-1 + (T -1) in
the year T = project cumulative net cash flow for the first time positive or zero
Dynamic investment recovery period net cash flow of absolute value / year of T P = T-1 + cumulative discounted value of the last year of the present value of
T = project total discounted value of the Year for the first time positive or zero
Economic Value Index
** Net Present Value (NPV) ** refers to a certain discount rate will be discounted net cash flow is calculated at each time point during the program to calculate the present value of the cumulative sum of the beginning and
if only the initial investment project K0, after each average is obtained equal net NB, NB = the case the NPV (P / a, I, n-) -K0
** net annual value (NAV) ** compounding method is used in the program of the average lifetime NPV odd profit sharing amount equal to the NAV each year obtained = NPV (a / P, i , n)
net future value (NFV), also known as net final value refers to an equivalent of the end of the life calculated by compounding entirety cash flow and the final value NFV = NPV (F / P, i, n) = NAV (F / A, i, n)
Economic efficiency evaluation
NPV index : NPVI = NPV / P
IRR the IRR the IRR = IM + {| the NPV (IM) / | the NPV (IM) | + | NPV (in)} || * (in-IM) wherein NPV (in) <0, NPV (im)> 0 i.e., test algorithm