Guide to COST-BENEFIT ANALYSIS of investment projects - Ramiri

3.3.4.6 Risk assessmentCritical factors- Future demand- Investment costs- Technological evolution and probable obsolescence of the infrastructureMainvariablesto consider- Growth rates for the population and businesses- Dynamics of the sales prices for services- Investment costs for technological development- Length of the substitution cycles (ageing, technical obsolescence) of theequipment installed3.3.4.7 Other project evaluation approachesAn important aspect that might be highlighted is the flexibility of the project and its adaptability to futuredevelopment in the field of telematic and multi-media services. It could be useful to check for theadaptability, in technological terms, to wider needs stemming from likely future development (forexample: cable versus wireless local networks).CHECKLISTTry to estimate the volume of traffic and the daily, weekly and seasonal trendsIn the case of telephones, the existence of government-regulated tariffs may help in forecasting price dynamicsIn addition to the financial revenues, the following economic effects should be taken into account:- the time saved for each communication (users may be divided into categories),- the new additional services, which would be unavailable without the project (willingness-to-pay).3.4 Other sectors3.4.1 Education and training infrastructures3.4.1.1 Project objectivesProjects may focus on one or more of the following:- basic education- vocational needs- higher education (universities, business schools, etc.)- particular needs for specialisation in productive areas- improvement of the positioning of young people in the labour market- elimination of discrimination between social classes, genders- better opportunities for the disabled.3.4.1.2 Project identificationIn order to evaluate the project it would be advisable to specify the following features:117