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In this paper, a pre-and re-evaluation model, in which the benefits risk and the project delay risk are simultaneously incorporated, is formulated to evaluate the efficiency of delayed projects at regular intervals. The model provides decision makers with information on the optimal decisions of whether the delayed projects should be continued or scrapped at each re-evaluation timing in infinite time horizon. The model is extended to discuss the benefits derived from reserving decisions at the next re-evaluation timing. This paper illustrates numerical examples to analyze how the evaluation results are controlled by the project characteristics.

Pre-and Re-Evaluation System of Public Projects Incorporating Demand Risk and Delay Risk