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Description
Candidate infrastructures - including location, environment, and regulations - are evaluated. The evaluations may include a high-level, rough-cut, cost-benefit analysis. Infrastructure analysis is one of the more important activities since infrastructure is difficult and expensive to change. These are long-term decisions that must be designed for uncertainty in the future environment. Factors that affect the infrastructure's location are cost, available business services, labour and other government regulations, labour availability, customer/market proximity, suppliers, and competitors. There are various methods to conduct the evaluation of location alternatives including The Factor-Rating Method, Locational Break-Even Analysis, Centre-of-Gravity Method and the Transportation Method.