I-15/Limonite Ave Interchange
Improvement Project
Benefit Estimates
Benefits were estimated over our 20-year analysis period using two components:
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Reductions in delays relative to the No-Build
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Reductions in emissions relative to the No-Build
Cost Estimates
Cost were estimated using two components:
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Support Costs
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Construction Costs
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Right of Way Costs
Time Benefit/Cost Estimates
As these costs and benefits will be spread out over the course of 24 years (2016-2040) graphs were created to visuallize the benefits relative to cost over time.
*Money presented in 2016 dollar value
Benefit/Cost Ratio
The benefits were then divided by the costs in order to determine two things. First this is an indication of whether or not the project is financially worth the investment. A B/C of under one means the costs out-weigh the benefits and is thus not financially sound. Second the B/C ratio gives a standard of comparison between the two projects. An alternative may cost little to build compared to the other alternatives, but if its benefits are equally little the alternative might not be worth it.
Conclusion
Based on the above Benefit/Cost ratios we have concluded the Partial Cloverleaf, with a B/C of 16.7, is financially the preferred alternative.
In order to quantitatively compare the two alternatives together a benefit cost analysis was conducted. The purpose of this is to first determine whether or not the project is economically viable and second to determine which project is expected to produce the most value.