Comparative Analysis Report

Once the data entries for two or more project alternatives (one of them being the base case) are completed, you can generate two different types of comparative economic analysis reports for those alternatives. One is the Comparative Analysis Report, the other the Lowest LCC Report.

To generate the Comparative Analysis Report select in the dialog box the base case and alternative you want to compare. The alternative with the lower initial investment cost is usually considered to be the base case. BLCC5 reports for the base case and the alternative:

for financed projects only:

The two alternatives to be compared must be mutually exclusive.

Comparative Measures for Financed Projects
The Savings-to-Investment Ratio (SIR) and the Adjusted Internal Rate of Return (AIRR) cannot be computed in a financed project. They are normally calculated as a ratio of or a rate of return on the difference in initial investment costs between the base case and the alternative. Since neither the base case nor the alternative require the agency to provide initial investment funds at the base date (except for maybe a down-payment), calculating an SIR or AIRR is meaningless.

Likewise, the computation of Payback Period is not relevant in a financed project. Payback Period is normally computed as the time needed to recover initial investment costs. Since neither the base case nor the alternative require the agency to provide initial investment funds at the base date, the Payback Period is meaningless.

Consequently, for financed projects, the Net Savings measure, which is the difference between the LCC of the alternative and the LCC of the base case, is the only appropriate comparative measure to determine the cost-effectiveness of an alternative compared with a base case.

From BLCC5, you can save the Comparative Analysis Report as an HTML file and/or print it. Once saved, the report can be viewed by opening the file in your web browser. To print a saved report, open the report in your web browser and print directly from the browser.