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September 11, 2021 <br />Page 61 <br />VII. Benefit -Cost Analysis <br />Benefit -cost analysis (BCA) converts the benefits and costs of a transportation investment into a <br />common measure (dollars) so a benefit -cost ratio may be calculated and used as an indicator of cost <br />effectiveness. BCAs rely on net present value to calculate a single number representing benefits <br />accruing over long periods of time. This allows long-term benefits to be directly compared to costs, <br />which are incurred primarily in the initial years. <br />The principal benefits monetized in a BCA are travel time, changes in vehicle operating costs, <br />vehicle crashes, and remaining capital value. Taken together, these benefits provide an indication of <br />a project's economic desirability, which can be weighed against other considerations, effects, and <br />impacts of the project. Projects are considered cost-effective if the benefit -cost ratio is greater than <br />1.0. The larger the ratio number, the greater the benefits per unit cost. <br />Northwest Metro Mississippi River Crossing Feasibility Analysis <br />