1.1 This guide covers techniques for treating uncertainty in input values to an economic analysis of a building investment project. It also recommends techniques for evaluating the risk that a project will have a less favorable economic outcome than what is desired or expected.
1.2 The techniques include breakeven analysis, sensitivity analysis, risk-adjusted discounting, the mean-variance criterion and coefficient of variation, decision analysis, and simulation.
1.3 The techniques can be used with economic methods that measure economic performance, such as life-cycle cost analysis, net benefits, the benefit-to-cost ratio, internal rate of return, and payback.
| SDO | ASTM: ASTM International |
| Document Number | E1369 |
| Publication Date | April 1, 2007 |
| Language | en - English |
| Page Count | 15 |
| Revision Level | 07 |
| Supercedes | |
| Committee | E06.81 |