BENEFIT/COST ANALYSIS

The Benefit/Cost (B/C) analysis is used to evaluate the economic advantages (benefits) of a project compared to the disadvantages (cost). This analysis is significant in determining the preferred alternatives for this project as it justifies the costs of constructing each alternative. While the initial costs of each alternative will be a large value, the benefits granted to the public over the years will offset the initial capital costs. The methodology of a B/C analysis is the ratio between the Benefits and Cost for each alternative. A ratio of 1.0 and above serves as justification and economic feasibility that an alternative has benefits that outweigh its costs. As this numerical value increases, so does the quality of that alternative.