| Abstract: | Environmental technology development, like other ventures, requires decisions regarding where to invest scarce capital. The investment option that offers the greatest benefit relative to the cost should be chosen. The problem is to determine a way to analyze the project and apply a useful measure for comparison to other investment opportunities. In this article, three methods of analysis are presented: return on investment, benefit-to-cost ratio, and payback period. Formulas are developed for each of the methods, and a case study illustrates their application. |
