Design Guidelines for Horizontal Sightline Offsets (2019) / Chapter Skim
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23 Benefit-cost analysis is an economic analysis approach that can be used to assess whether any proposed highway improvement is cost-effective (i.e., whether the benefits from implementation of the improvement exceed its costs)
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24 Design Guidelines for Horizontal Sightline Offsets ICij = implementation cost ($) for improvement j at site i; (P/A, i%, n)
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Benefit-Cost Analysis 25 4.6 Uniform Series Present Worth Factor The annual crash cost savings should be reduced to their present worth by multiplying by the uniform series present worth factor, computed as follows: ( )
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26 Design Guidelines for Horizontal Sightline Offsets Equation (9) can be transformed as follows to estimate the maximum implementation cost that could be incurred while still achieving a benefit-cost ratio equal to 1.0: ∑[ ]
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Benefit-Cost Analysis 27 Then, using the crash cost estimates in Table 2, Equation (11) is applied to estimate the maximum implementation cost as follows: maxIC 5722300 0.05 302,900 0.1 110700 0.15 62400 0.3 10120 10.59 $408,891 (13)
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