The purpose of a benefit/cost evaluation is to determine if the overall benefits to society exceed the overall costs. Typically, the quantifiable benefits are divided by the quantifiable costs. If the resulting ratio is greater than 1.0, the project is considered viable from this standpoint. Viability from a benefit/cost standpoint does not necessarily imply financial feasibility, since it may not be possible to monetize all of the benefits. Financial feasibility is discussed under Business Plan.
Typical Costs
Typical Benefits
The analysis of costs and benefits of the personal rapid transit system should attempt to quantify all costs and benefits, while carefully avoiding counting one benefit more than once (e.g., reduction in automobile operating costs should be offset by increased fare costs).
