where the net operating income is the value of the incremental cash flows
to the community as a result of the project. The capitalization rate is the
cost of bonds and other instruments used in the public sector contribution.
If the resulting value is greater than the present value of the public sector
investment, there is compelling evidence that the investment is a good one
for the community provided that market feasibility analyzes indicate that
there will adequate demand to support the project over the long term.
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