A Compendium and Comparison of 25 Project Evaluation Techniques. Part 2: Ratio, Payback, and Accounting Methods

Authors

Donald S. Remer, Harvey Mudd CollegeFollow
Armando P. Nieto

Document Type

Article

Department

Engineering (HMC)

Publication Date

12-1995

Abstract

This two-part paper presents 25 different methods and techniques used to evaluate the economic desirability of projects. We categorized these 25 methods into 5 types: net present value methods, rate of return methods, ratio methods, payback methods, and accounting methods. We provide insight into the advantages and limitations of these project evaluation methods by comparing and contrasting them. Many examples are included to illustrate the use of these methods. In Part 1, we examine net present value and rate of return methods. In Part 2, we examine ratio, payback, and accounting methods. A recap, comparison, and full summary of all 25 methods is included at the end of Part 2.

Rights Information

Copyright © 1995 Published by Elsevier Science B.V.

Recommended Citation

Remer, Donald S. and Armando P. Nieto. "A Compendium and Comparison of 25 Project Evaluation Techniques. Part 2: Ration, Payback, and Accounting Methods," in the International Journal of Production Economics, Vol. 42, No. 2 (Dec., 1995), 101-129. doi:10.1016/0925-5273(95)00105-0