APPENDIX A
MnDOT Office of Capital Programs and Performance Measures Benefit-Cost Analysis Standard Value Tables - July 2012 |
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Table A.1 Recommended standard values for use in B/C analysis in SFY2013 |
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Variables |
Current Value |
Real Discount Rate (1) |
2.5% |
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Auto- value of travel time savings per person-hour (2) |
$15.60 |
Truck- value of travel time savings per person-hour (2) |
$26.90 |
Auto- variable operating cost (dollars per mile) (3) |
$0.31 |
Truck- variable operating cost (dollars per mile) (3) |
$0.95 |
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MnDOT Crash Values (4) |
Per crash |
Fatal |
$7,100,000 |
Injury Type A |
$370,000 |
Injury Type B |
$110,000 |
Injury Type C |
$55,000 |
Property damage only |
$3,400 |
(1) Determined as a five-year average for real interest rates (market rate less inflation) on 30-year Treasurys. |
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(2) Adapted from US DOT's "Revised Departmental Guidance on Valuation of Travel Time in Economic Analysis" |
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(3) Updates cost levels in Univ. of Minnesota report "The Per-Mile Costs of Operating Automobiles and Trucks". Variable costs include fuel, maintenance, tires, repair and depreciation. |
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(4) Reflects Minnesota's three-year crash history and US DOT procedures contained in "Treatment of the Economic Value of a Statistical Life (VSL) in Departmental Analyses—2011 Interim Adjustment" published July 29, 2011, and based on a VSL of $6.2 million in 2011$. |
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Table A.2 Recommended remaining capital value factors for use in benefit-cost analysis in SFY 2013
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Expected life (years)>> |
25 |
30 |
35 |
40 |
50 |
60 |
100 |
Analysis: 20 years |
0.25 |
0.42 |
0.53 |
0.62 |
0.74 |
0.81 |
0.94 |
Analysis: 25 |
0.00 |
0.22 |
0.38 |
0.49 |
0.65 |
0.75 |
0.92 |
Analysis: 30 |
0.00 |
0.00 |
0.20 |
0.35 |
0.55 |
0.68 |
0.90 |
Example: $10 million spent on structures (60 years expected life) for an analysis period of 25 years has a remaining capital value of 0.75 x $10 million ($7.5 million) in the last year of the analysis period. (Factors reflect a real discount rate of 2.5%).
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