ASTM E1369-07e2

ASTM E1369-07e2 - 1.4.2007

1. Scope

1.1 This guide covers techniques for treating uncertainty in input values to an economic analysis of a building investment project. It also recommends techniques for evaluating the risk that a project will have a less favorable economic outcome than what is desired or expected.

1.2 The techniques include breakeven analysis, sensitivity analysis, risk-adjusted discounting, the mean-variance criterion and coefficient of variation, decision analysis, and simulation.

1.3 The techniques can be used with economic methods that measure economic performance, such as life-cycle cost analysis, net benefits, the benefit-to-cost ratio, internal rate of return, and payback.

2. Referenced Documents

E1074-15(2020)e1	Standard Practice for Measuring Net Benefits and Net Savings for Investments in Buildings and Building Systems (Includes all amendments and changes 5/6/2020).
E1121-15(2020)e1	Standard Practice for Measuring Payback for Investments in Buildings and Building Systems (Includes all amendments and changes 5/6/2020).
E1185-15(2020)e1	Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems (Includes all amendments and changes 5/6/2020).
E1057-15(2020)e1	Standard Practice for Measuring Internal Rate of Return and Adjusted Internal Rate of Return for Investments in Buildings and Building Systems (Includes all amendments and changes 5/6/2020).
E964-15(2020)e1	Standard Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building Systems (Includes all amendments and changes 5/6/2020).
E917-17(2023)	Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
E833-14(2021)	Standard Terminology of Building Economics
E631-15	Standard Terminology of Building Constructions
E1946-18(2023)	Standard Practice for Measuring Cost Risk of Buildings and Building Systems and Other Constructed Projects
E2204-15(2020)e1	Standard Guide for Summarizing the Economic Impacts of Building-Related Projects (Includes all amendments and changes 8/24/2023).
	Adjunct to Practices , , , , and Available from ASTM International Headquarters. Order Adjunct No. . Original adjunct produced in 1984.