ABSTRACT
This chapter describes five cost–benefit studies conducted on large projects that extend over many years. The first cost–benefit analysis was conducted to determine if a new vehicle should be developed and built in another country. The decision is complex because it involves consideration of different wages to be paid to technical and labor in different countries and increased vehicle shipping costs over many years of production. Cases studies 2 and 3 provide insights into the costs and revenues of electric power generation plants that use different technologies over long periods of plant construction and power generation. Case study 4 illustrates a cost–benefit analysis conducted by the Environmental Protection Agency and the National Highway Transportation Safety Administration to justify stringent emission and fuel economy requirements on future light vehicles in the United States based on increased costs of new fuel-saving technologies in future car and light truck products and the benefits that will be incurred due to fuel savings and reduction in greenhouses gases. Case study 5 illustrates a cost–benefit analysis conducted to support a decision to implement robots for improving the assembly costs and output of differential carrier assemblies in automotive products.
