Sample Benefit-To-Cost Analysis Worksheet Template
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1Railroad-Highway Grade Crossing Handbook—Revised Second Edition
Figure 58. Sample Benefit-to-Cost Analysis Worksheet
Evaluation No.: _______________ Project No.: _______________ Date: _____________________________
Evaluator: ___________________________________________________________________________________
1. Initial implementation cost, I:
$
100,000
2. Annual operating and maintenance costs
before project implementation:
$
100
3. Annual operating and maintenance costs
after project implementation:
$
1,000
4. Net annual operating and maintenance
costs, K (#3 - #2):
$
900
5. Annual safety benefits in number of accidents prevented:
Severity
Actual
– Expected
= Annual Benefit
a) Fatal accidents (fatalities)
0
–
0
=
0
b) Injury accidents (injuries)
4
–
2
=
2
c) PDO accidents (involvements)
5
–
3
=
2
6.
Accident cost values (Source Department )
Severity
Cost
a) Fatal accident (fatality)
$
500,000
b) Injury accident (injury)
$
50,000
c) PDO accident (involvement)
$
2,000
7.
Annual safety benefits in dollars saved, B:
(5a)
x (6a) =
500,000 x 0
=
0
(5b)
x (6b) =
50,000 x 2
=
100,000
(5c)
x (6c) =
2,000
x 2
=
4,000
Total =
$104,000
8.
Service life, n:
20
yrs
10. Interest rate:
10%
= .10
9.
Salvage value, T:
$5,000
(Annual compounding interest)
11. EUAC Calculation:
Capital recovery factor, CR
=
0.1175
Sinking fund factor, SF
=
0.0175
EUAC = I (CR) + K - T (SF)
= 100,000 (0.1175) + 900 - 5,000 (0.0175) = 12,562
12. EUAB Calculation: EUAB = B = 104,000
13. B/C = EUAB/EUAC =
104,000 / 12,562 = 8.3
14. PWOC Calcuation:
Present worth factor, PW = 8.5136
Single payment present worth factor, SPW
= 0.1486
PWOC = I + K (SPW ) - T (PW )
= 100,000 + 900 (8.5136) - 5,000 (0.1486) = 106,919
15. PWOB Calculation:
PWOB = B (SPW) =
104,000 (8.5136) = 885,414
16. B/C = PWOB/PWOC =
885,414 / 106,919 = 8.3
Source: Railroad-Highway Grade Crossing Handbook, Second Edition. Washington, DC: U.S. Department of Transportation, Federal
Highway Administration, 1986.
160
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