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Effective practices for preparing Airport Improvement Program benefit-cost analysis

Author: Steven Richard Landau; Glen E Weisbrod; National Research Council (U.S.). Transportation Research Board.; Airport Cooperative Research Program.; United States. Federal Aviation Administration.
Publisher: Washington, D.C. : Transportation Research Board, 2009.
Series: ACRP synthesis, 13.
Edition/Format:   Print book : Document : National government publication   Computer File : EnglishView all editions and formats
Summary:
Benefit-Cost Analysis (BCA) aids in making capital investment decisions by determining whether the benefits of a proposed action justify its costs. This synthesis, Effective Practices for Preparing Airport Improvement Program Benefit-Cost Analysis, defines and describes benefit assessment techniques used by airports as well as other modes, highlights best practices, and identifies inconsistencies of how benefits are  Read more...
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Additional Physical Format: Online version:
Landau, Steven Richard.
Effective practices for preparing Airport Improvement Program benefit-cost analysis.
Washington, D.C. : Transportation Research Board, 2009
(OCoLC)1029732463
Material Type: Document, Government publication, National government publication, Internet resource
Document Type: Book, Computer File, Internet Resource
All Authors / Contributors: Steven Richard Landau; Glen E Weisbrod; National Research Council (U.S.). Transportation Research Board.; Airport Cooperative Research Program.; United States. Federal Aviation Administration.
ISBN: 9780309098373 0309098378
OCLC Number: 402526531
Notes: "A synthesis of airport practice."
At head of title: Airport Cooperative Research Program.
Description: 65 pages : illustrations ; 28 cm.
Series Title: ACRP synthesis, 13.
Other Titles: Preparing Airport Improvement Program benefit-cost analysis
Responsibility: consultants: Steve Landau and Glen Weisbrod.

Abstract:

Benefit-Cost Analysis (BCA) aids in making capital investment decisions by determining whether the benefits of a proposed action justify its costs. This synthesis, Effective Practices for Preparing Airport Improvement Program Benefit-Cost Analysis, defines and describes benefit assessment techniques used by airports as well as other modes, highlights best practices, and identifies inconsistencies of how benefits are calculated and where there is confusion in the benefit-cost guidance published by the FAA. The project focused on a review of benefit-cost literature, including benefit-cost analyses submitted to the FAA, and structured interviews with airport managers and other applicants, consultants who prepared BCA studies, and FAA staff. BCA is a tool to aid agencies in project selection and prioritization. At its core, it is a computational tool to determine whether an investment will generate benefits that will exceed its costs. This analysis is accomplished by expressing all current and future benefits and costs on an equivalent basis, which is their present value (PV). A project is economically efficient if it has a positive Net Present Value (calculated as the PV of benefits minus the PV of costs), and hence also a Benefit-Cost Ratio exceeding one.

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