Methods for Evaluating Investment Strategies for Environmental Technologies

Abstract

Environmental technology development, like other ventures, requires decisions regarding where to invest scarce capital. The investment option that offers the greatest benefit relative to the cost should be chosen. The problem is to determine a way to analyze the project and apply a useful measure for comparison to other investment opportunities. In this article, three methods of analysis are presented: return on investment, benefit‐to‐cost ratio, and payback period. Formulas are developed for each of the methods, and a case study illustrates their application.

Department(s)

Civil, Architectural and Environmental Engineering

International Standard Serial Number (ISSN)

1051-5658; 1520-6831

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 1995 John Wiley & Sons, All rights reserved.

Publication Date

01 Sep 1995

Link to Full Text

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