Abstract
Investment appraisal concerned with investments in fire safety systems is discussed. Particular attention is directed at evaluating, in terms of the Bayesian decision theory, the risk reduction that investment in a fire safety system involves. It is shown how the monetary value of the change from a building design without any specific fire protection system to one including such a system can be estimated by use of quantitative risk analysis, the results of which are expressed in terms of a Risk-adjusted net present value. This represents the intrinsic monetary value of investing in the fire safety system. The method suggested is exemplified by a case study performed in an Avesta Sheffield factory. (C) 2002 Elsevier Science B.V. All rights reserved.
| Original language | English |
|---|---|
| Pages (from-to) | 77-91 |
| Journal | Journal of Hazardous Materials |
| Volume | 93 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2002 |
Subject classification (UKÄ)
- Other Civil Engineering
- Building Technologies
Free keywords
- decision analysis
- investment appraisal
- fire
- Bayesian updating
- protection
- risk analysis