X hits on this document

291 views

0 shares

0 downloads

0 comments

74 / 122

——

.

-

.

each option. The 80 percent credible interval means that there is a 10 percent chance of NPV being above the largest value and a 10 percent chance of NPV being below the smallest value. The NPVs and credible intervals are shown overall and conditional on ZIP+4 usage.

Figure 13 shows, in effect, the ranking of the options by expected net present value and the range of uncertainty in NPV associated with each option, both overall and conditional on ZIP+4 use. The ranking of the options by expected NPV is summarized below:

E

3

G

4

A

5

B

6

c

7 lowest

Overall

NPV Rank

Option D H

1 highest 2

Option D

1 highest

E

2 tie

H

3

c

4

G

5

B

6

A

7 lowest

Low ZIP+4 Usage

Thus, option D (automatic conversion) ranks first in NPV both overall and with low ZIP+4 usage. Option H (90-10 split procurement) ranks second in NPV overall and third

with low ZIP+4 usage. Option E for first with low ZIP+4 usage. OCR) rank almost identically in relatively low (6th) in NPV, both

(hedge conversion) ranks third in NPV overall and ties

Options G (50-50 split procurement)

overall

NPV.

Option

B

(multi-line

and A with

(single-line ZIP+4) ranks

overall

and

with

low

ZIP+4

usage.

Option

C

(multi-line

--

Document info
Document views291
Page views291
Page last viewedSat Dec 03 02:32:12 UTC 2016
Pages122
Paragraphs3734
Words24057

Comments