Project Net Gain Archives

How to select among alternatives. A better and safer method than NPV

How to select among alternatives. A better and safer method than NPV? For mining rehabilitation or mining transportation system, the “strongest alternative” is the one that has the largest Economic Safety Margin (ESM), evaluated as the difference between the Project Net Gain (PNG)= Project Returns (PR) – Costs (C) and Total Risk (TR), i.e. the value obtained through the Comparative Decision Analysis (CDA) methodology. Where: ESM=PNG-TR=PR-C-TR=PR- (C+TR). The ESM is the difference between the capacity (the “strength” of a project…