Accession Number : AD0800875

Title :   THE DEVELOPMENT OF AN ECONOMIC METHOD TO DETERMINE WHETHER AN EXISTING NAVAL FACILITY SHOULD BE REPLACED OR CONTINUED IN USE BY MODERNIZATION.

Descriptive Note : Final rept. 30 Sep 65-31 Mar 66,

Corporate Author : BATTELLE MEMORIAL INST COLUMBUS OH

Personal Author(s) : Pesut, R. N. ; Cesario, F. J. ; Gordon, B. B. ; Guy, R. B. ; Robinson, G. L.

Report Date : SEP 1966

Pagination or Media Count : 53

Abstract : An economic model was developed to aid the analyst in calculating the ultimate cost of making a decision either to replace an existing facility with a new facility or continue the existing facility in use by modernization. This model deals explicitly with the risks associated with the survival and future need of the facility. The basic model developed in this report is designed for comparing costs of alternatives. Comparison of benefits generally requires exercise of management judgment. A discussion of methods by which costs and benefits can be jointly considered is included. Also a discussion of methods of estimating the cost factors involved in the economic evaluation is presented. (Author)

Descriptors :   (*NAVAL SHORE FACILITIES, REPLACEMENT THEORY), (*MATHEMATICAL MODELS, COST EFFECTIVENESS), COSTS, CONSTRUCTION, SITE SELECTION, TRANSPORTATION, NAVAL OPERATIONS, SALVAGE, BUILDINGS, MAINTENANCE, RECLAMATION, DECISION MAKING, PROBABILITY, SAMPLING, ECONOMICS, MANAGEMENT PLANNING AND CONTROL.

Subject Categories : Economics and Cost Analysis
      Statistics and Probability

Distribution Statement : APPROVED FOR PUBLIC RELEASE