oa Civil Engineering = Siviele Ingenieurswese - Cost escalation in economic analyses
Cost comparisons between different solutions for planning problems are frequently based on 'present costs' or 'constant prices'. The comparisons can be expected to result in correct decisions when costs do not change with time; when costs escalate the decisions may not necessarily be correct. It is therefore necessary to establish, firstly, whether the use of present costs results in good planning decisions when costs increase and, secondly, what adjustments have to be made when increasing costs are to be taken into account.
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