1. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Chapter Cost-Benefit Analysis Concepts and Practice Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer FOURTH EDITION Discounting Benefits and Costs in Future Time Periods Six

2. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 6-1 A Time Line Diagram for City Land Purchase Example

3. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 6-2 NPV of Buying the Land

4. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer

5. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 6-3 Time Lines for Project I and Project II

6. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 6-4 Time Line of the Benefits and Costs of the Library Information System

7. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer

8. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 6-5 Time Line of the Benefits and Costs of the Library Information System Assuming User Benefits Occur at the Beginning of Each Year

9. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer

10. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer

11. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer

12. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 6-6 Sensitivity Analysis: NPV of the Library Information System as a Function of the Discount Rate and the Horizon Value

13. Copyright ©2011 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Cost-Benefit Analysis: Concepts and Practice, Fourth Edition Boardman Greenberg Vining Weimer Figure 6A-1 Present Value of $150 per Year (in Thousands) for Seven Years, Starting in Three Years