Građevinar, Vol. 58 No. 11., 2006.
Review article
Risk analysis in the economic evaluation of projects: example of Zagreb water supply system
Robert Kartelo
Abstract
The operative procedure for the risk and sensitivity analysis, aimed at determining critical variables in the economic analysis of capital projects, is presented using the Zagreb water supply system as an example. The Latin hypercube method is applied so as to determine the level of risk on individual projects based on two basic indicators: internal rate of return and the net present value. It is stressed that the accuracy of input data is of crucial significance for making well-informed investment decisions.
Keywords
risk analysis; critical variables; investment projects; Latin hypercube method; net present value; internal rate of return
Hrčak ID:
6804
URI
Publication date:
14.12.2006.
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