Differential increases in projected future prices should
be included in economic analyses by using equivalent, uniform annual
costs and revenues for direct comparison. This can be accomplished by
using life-cycle costing procedures such as those presented by Pearson
(27). Escalation or descalation of costs should be made relative to a composite escalation rate (weighted average of rates for all other costs) if costs are discounted using a nominal, noninflationary discount rate (26).