The simplified method to estimate the limit of expenditure share in railway projects

Abstract

In this paper, we studied such methods as could confirm the profit of railway projects and could work out the share ratio of expenditure from the point of allotment on Japan Railway Company (JR).
Usually, JR make it a rule to share the expenditure within the amount of benefit from the project. This method, however, is a hard task because it requires detailed account for the income, expense, and so on. Therefore, a more simplified method has been required.
Ratios of expenditure for JR depend on each project without any rule. But, in general, the limit is almost ten times as much as the increased income from the project per year. We named this fact ‘tenfold theory’, and confirmed its theory. This method is such an epoch-making theory that enables to judge a project easily without having trouble to calculate the details. We expect this convenient method to be widely utilized afterward.