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The primary transportation-related elements that can be monetized are travel time costs, vehicle operating costs, safety costs, ongoing maintenance costs, and remaining capital value (a combination of capital expenditure and salvage value). The objective of a benefit-cost analysis is to translate the effects of an investment into monetary terms and to account for the fact that benefits generally accrue over a long period of time while capital costs are incurred primarily in the initial years. In other words, a benefit-cost analysis tries to answer the question: What additional benefits will result if this Alternative is undertaken, and what additional costs are needed to bring it about? The analysis evaluates incremental differences between the Base Case and the Alternative(s). Typically, a “Base Case” is compared to one or more Alternatives (which have some significant improvement compared to the Base Case).

Section 5 Conducting a Benefit-Cost AnalysisĪ benefit-cost analysis is a systematic evaluation of the economic advantages (benefits) and disadvantages (costs) of a set of investment alternatives.Section 4 Economic Terms and Principles.

Section 3 How Does Benefit-Cost Analysis fit into the Project Development Process?.Section 2 What is Benefit-Cost Analysis?.This document presents benefit-cost analysis guidance for highway improvement projects in the following sequence: This Guidance is based on “User Benefit Analysis for Highways”, AASHTO, August 2003. Review of relevant stages in conducting a benefit-cost analysis for highway projects.Discussion of economic terms and principles.Background information on benefit-cost analysis and how it may fit into the project development process.This document is intended to provide guidance to perform benefit-cost analysis for highway projects. Benefit-Cost Analysis for Transportation Projects 1.

Inserting existing index.html in freeway pro