Publication:
When and How to Use NPV, IRR, and Modified IRR

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dc.contributor.authorMackie, Peter
dc.contributor.authorNellthorp, John
dc.contributor.authorLaird, James
dc.date.accessioned2012-08-13T16:02:23Z
dc.date.available2012-08-13T16:02:23Z
dc.date.issued2005-01
dc.description.abstractThe Economic Evaluation Notes are arranged in three groups. The first group (TRN-6 to TRN-10) provides criteria for selection a particular evaluation technique or approach; the second (TRN-11 to TRN-17) addresses the selection of values of various inputs to the evaluation, and the third (TRN-18 to TRN-26) deals with specific problematic issues in economic evaluation. The Notes are preceded by a Framework (TRN-5), that provides the context within which we use economic evaluation in the transport sector. All three NPV, IRR, and modified IRR are summary measures of project performance. Each one provides a single figure summarizing the impact of the project on economic welfare. Each of the three measures does, however, give subtly different information: 1) NPV focuses on the total welfare gain over the whole life of the project; and, 2) IRR and Modified IRR focus on the rate at which benefits are realized following an initial transport investment.en
dc.identifierhttp://documents.worldbank.org/curated/en/2005/01/6371290/notes-economic-evaluaiton-transport-projects-use-npv-irr-modified-irr-notes-economic-evaluation-transport-projects-use-npv-irr-modified-irr
dc.identifier.doi10.1596/11792
dc.identifier.urihttps://hdl.handle.net/10986/11792
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesTransport Notes Series; No. TRN 6
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectBASE YEAR
dc.subjectBRIDGES
dc.subjectCASH FLOWS
dc.subjectCOST BENEFIT ANALYSIS
dc.subjectCOST OF CAPITAL
dc.subjectCYCLISTS
dc.subjectDISCOUNT RATE
dc.subjectECONOMIC EVALUATION
dc.subjectECONOMIC RATE OF RETURN
dc.subjectFRAMEWORK
dc.subjectFUTURE VALUE
dc.subjectINTERCHANGES
dc.subjectINTEREST RATE
dc.subjectINTERNAL RATE OF RETURN
dc.subjectINVESTMENT OPERATIONS
dc.subjectINVESTMENT PROJECTS
dc.subjectLIGHT RAIL
dc.subjectMAINTENANCE ACTIVITIES
dc.subjectMARKET INTEREST RATE
dc.subjectNET BENEFITS
dc.subjectNET PRESENT VALUE
dc.subjectNPV
dc.subjectOPERATING COSTS
dc.subjectOPPORTUNITY COST
dc.subjectPEDESTRIANS
dc.subjectPORTS
dc.subjectPRESENT VALUE
dc.subjectPUBLIC INVESTMENTS
dc.subjectPUBLIC TRANSPORT
dc.subjectREGULATORY REFORM
dc.subjectROAD INFRASTRUCTURE
dc.subjectROAD MAINTENANCE
dc.subjectROUTES
dc.subjectSAFETY
dc.subjectSAVINGS
dc.subjectTAX REFORM
dc.subjectTRAFFIC
dc.subjectTRAFFIC MANAGEMENT
dc.subjectTRANSPORT
dc.subjectTRANSPORT ECONOMICS
dc.subjectTRANSPORT PROJECTS
dc.subjectTRAVEL TIME
dc.subjectTUNNELS
dc.subjectURBAN DEVELOPMENT
dc.subjectURBAN INFRASTRUCTURE
dc.subjectURBAN TRANSPORT
dc.subjectVEHICLE OPERATING COSTS
dc.titleWhen and How to Use NPV, IRR, and Modified IRRen
dspace.entity.typePublication
okr.date.doiregistration2025-04-29T10:35:09.414373Z
okr.doctypePublications & Research::Brief
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2005/01/6371290/notes-economic-evaluaiton-transport-projects-use-npv-irr-modified-irr-notes-economic-evaluation-transport-projects-use-npv-irr-modified-irr
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeTransport and ICT
okr.globalpracticeFinance and Markets
okr.globalpracticeWater
okr.guid234331468329400081
okr.identifier.externaldocumentum000012009_20051026153703
okr.identifier.internaldocumentum6371290
okr.identifier.report33927
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/10/26/000012009_20051026153703/Rendered/PDF/339270rev.pdfen
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicRoads and Highways
okr.topicBanks and Banking Reform
okr.topicWater Supply and Sanitation::Water Supply and Sanitation Finance
okr.topicEconomic Theory and Research
okr.topicFinance and Financial Sector Development
okr.topicTransport
okr.unitTransport Unit (ETWTR)
okr.volume1 of 1
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