Number: RL31976
Title: Benefit-Cost Analysis and the Discount Rate for the Corps of Engineers Water Resource Projects: Theory and Practice
Authors: Kyna Powers, Resources, Science, and Industry Division 
Abstract: This report examines the federal planning guidelines for the Corps water project evaluations. These guidelines establish the objectives of federal water projects, guide which benefits and costs contribute to the objectives, delineate methodologies for measuring benefits and costs, and set the discount rate formula. Following a general history of federal water project planning guidelines, this report focuses of the discount rate. It describes the present discount rate, alternative methods for deriving a discount rate, and how the discount rate affects each projects benefit-cost ratio.
Pages: 26
Date: Updated June 23, 2003