Use of TREDIS Analysis Modules to Address the “Business Case” for Transportation Investments
| Tool | Treatment of Time Effects | Outcome Metric | Use for Business Case Analysis |
| BCA | Discounted $ (future year values are diminished by the time value of money) |
Present Value of either Benefit Cost Ratio (B/C) or Net Benefit (B-C) (sum of stream over time) |
Efficiency of Investment reflecting roll-up of all benefits and costs over time, space and elements of the economy) |
| EIA | Constant $ (reflects today’s $) |
Change in Value Added (GRP) (and associated jobs) in specific target years |
Strategic Goal Achievement (in terms of economic growth for specified areas, times and elements of the economy) |
| FIA | Nominal $ (future year values are increased by inflation growth over time) |
Annual Cash Flow and Return on Investment (ROI) by year over facility life |
Feasibility of Financing (in terms of expenditures required and revenues achieved over time) |
BCA = Benefit-Cost Analysis, EIA = Economic Impact Analysis, FIA = Financial Impact Analysis
