The Discount Rate in Road Engineering Studies

摘要

The intention of the report is to provide the road engineer with a guide which covers the more important concepts behind the selection and usage of an appropriate discount rate for economy studies. The effects of inflation in this context are also clarified. It is recommended that if a discount rate is required without resorting to detailed calculation, a rate of ten percent be chosen, but if the road engineer wishes to make a more sophisticated study, he may undertake a sensitivity analysis to test the effects of a number of different discount rates.