Links

• Types of analysis
• Valuing benefits
• Inflation
• Discounting
• Transfer payments and double counting
• Joint and sunk costs
• Uncertainty
• Sensitivity analysis

Calculations

This section describes the various types of benefit-cost measures:

• Benefit-cost ratio
• Net present value
• Cost-effectiveness
• Internal rate of return
• Payback period
  

and tells how to calculate each.

 

It also provides tools for estimating benefits and costs. These include:

• Estimating benefits without established monetary value
• Dealing with inflation in future years
• Discounting of future benefits and costs
• Dealing with transfer payments and avoiding double counting
• Dealing with joint and sunk costs
• Dealing with uncertainty
• Sensitivity analysis

Acknowledgements

Hosted by the Caltrans Office of Transportation Economics

Created by the California Center for Innovative Transportation at the Institute of Transportation Studies at the University of California at Berkeley and the Committee on Planning and Economics of the American Society of Civil Engineers

Acknowledgements | Comments and Suggestions