Orange barrels on a highway
Planning and Programming
Benefit/Cost Analysis for Transportation Projects - Appendix A
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APPENDIX A

 

MnDOT Office of Capital Programs and Performance Measures
Benefit-Cost Analysis Standard Value Tables - July 2013

Table A.1

Recommended standard values for use in B/C analysis in SFY2014

Variables
Current Value

Real Discount Rate (1)

2.2%

 

 

Auto- value of travel time savings per person-hour (2)

$15.00

Truck- value of travel time savings per person-hour (2)

$27.20

   

Auto- variable operating cost (dollars per mile) (3)

$0.31

Truck- variable operating cost (dollars per mile) (3)

$0.95

 

 

MnDOT Crash Values (4)

Per crash

Fatal

$10,400,000

Injury Type A

$540,000

Injury Type B

$160,000

Injury Type C

$80,000

Property damage only

$3,300

 

(1) Determined as a five-year average for real interest rates (market rate less inflation) on 30-year Treasurys

 

(2) Adapted from US DOT's "Revised Departmental Guidance on Valuation of Travel Time in Economic Analysis" published Sept. 28, 2011, with Minnesota earnings rates.

 

(3) Updates cost levels in Univ. of Minnesota report "The Per-Mile Costs of Operating Automobiles and Trucks" published in 2003. Variable costs include fuel, maintenance, tires, repair and depreciation.

 

(4) Reflects Minnesota's three-year crash history and US DOT procedures contained in
"Revised Departmental Guidance 2013: Treatment of the Value of Preventing Fatalities and Injuries in Preparing Economic Analyses" published May 6, 2013, and based on a VSL of $9.1 million in 2012$.
 

 

 

 


Table A.2

Recommended remaining capital value factors for use in benefit-cost analysis in SFY 2014

 

Expected life (years)>>

25

30

35

40

50

60

100

Analysis:  20 years

0.24

0.41

0.52

0.61

0.72

0.80

0.93

Analysis:  25

0.00

0.21

0.37

0.48

0.63

0.73

0.91

Analysis:  30

0.00

0.00

0.19

0.33

0.53

0.66

0.88

 

Example: $10 million spent on structures (60 years expected life) for an analysis period of 25 years has a remaining capital value of 0.73 x $10 million ($7.3 million) in the last year of the analysis period. (Factors reflect a real discount rate of 2.2%).