Answer to Question #158135 in Macroeconomics for zoya khan

Question

Explain two numeric model that can be used to select the high speed train project. Which method is suitable to be used in evaluating the project feasibility plan? Why?                          

Answer 1

Solution:  

The two numeric models that can be used to select the high-speed train project include the following:

1.). The Preference Ranking Organization Method for Enrichment of Evaluations (PROMETHEE) – This is an outranking method that is used to rank a finite set of alternative actions when multiple criteria and multiple decision-makers are involved. It is for the enrichment of evaluations and its descriptive complement geometrical analysis for interactive aid. It comprises the values of selected factors considering the weights of the criteria with the preference functions. It can also be used to determine mode selection, route selection, average waiting time, and operational efficiency.

2.). Value Engineering (VE) – This is a multidisciplinary method that analyses and systematically improves function by reducing the cost and increasing the value of a product, design, service, or system. VE is a proven method in problem-solving and improving project competitiveness, including the ability to produce creative ideas and innovation.

The best method that is suitable to be used in evaluating the project feasibility plan is the Value Engineering (VE) method.

This is because VE improves the feasibility of the HST project as it produces a strategic outcome regarding quality, technology breakthrough, efficiency, and innovative creation. VE also generates value by proposing more benefits over cost.