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UDK: 628.1+69.003.2
DOI: n/a

Published: Građevinar 58 (2006) 11
Paper type: Subject review
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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

HOW TO CITE THIS ARTICLE:

Kartelo, R.: Risk analysis in the economic evaluation of projects: example of Zagreb water supply system, GRAĐEVINAR, 58 (2006) 11

OR:

Kartelo, R. (2006). Risk analysis in the economic evaluation of projects: example of Zagreb water supply system, GRAĐEVINAR, 58 (11)
Authors:

Robert Kartelo
Project Manager, Hrvatske vode