2.5 Costs
- 2.1 Overview
- 2.2 Social cost benefit analysis and financial analysis
- 2.3 Benefits
- 2.4 External impacts
- 2.5 Costs
- 2.6 Present value and discounting
- 2.7 Time frame
- 2.8 Do minimum and benefit and cost differentials
- 2.9 Benefit cost ratios
- 2.10 Incremental cost benefit analysis
- 2.11 First-year rate of return
- 2.12 Uncertainty and risk
- 2.13 Alternatives and options
- 2.14 Packages
- 2.15 Transport models
- 2.16 Other inputs to funding allocation process
- 2.17 References
2.5 Costs
Project costs
The costs taken into account in an economic efficiency evaluation depend on the type of project being evaluated.
Costs for road projects are identified in section 3.6 of this volume. Costs to be taken into account for transport demand management and transport services are listed in volume 2.
Sunk costs
Where expenditure on a project has already been incurred, it shall still be included in the evaluation if the item has a market value and this value can still be realised. Land is an example.
Costs irrevocably committed which have no salvage or realisable value are termed sunk costs and shall not be included in the evaluation, eg, investigation, research and design costs already incurred.
