Figure 1 PHR Expanded Economic Analysis—10-Year Time Horizon ASSUMPTIONS: Discount Rate Annual Costs A Annual Costs B Annual Costs C Annual Costs D Annual Benefits A Annual Benefits B Annual Benefits C CBA Result 1 CBA Result 2 CBA Result 3
12% Time horizon: 10 years normal project costs project costs with environmental costs, unmitigated costs of environmental intervention after project redesign remaining environmental costs after redesign normal project benefits project benefits plus any positive environmental externalities additional benefits after mitigation, if any Costs A + Benefits A Costs B + Benefits B Costs A + Costs C + Costs D + Benefits B + Benefits C
$250
Annual costs and benefits in U.S. dollars
$150
COSTS A
$50
COSTS B COSTS C COSTS D
($50)
BENEFITS A BENEFITS B BENEFITS C
($150)
PV ANALYSIS 1 PV ANALYSIS 2 PV ANALYSIS 3
($250)
($350)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year
Source: Author calculations
13