SU Week 8 Cost Effective Evaluation Questions

User Generated



Strayer University


Suggest another type of data your colleague might find useful  and other techniques of analysis he or she might employ. Provide a  rationale for your suggestions. $5 post

In  cases of economic evaluation, such as determining the effectiveness of  projects of the major high-speed overpass that extended to prevent  highway congest, and lower the cost of operating vehicles, and improve  the quality of transport services (McDavid, Huse & Hawthorn, 2019).  The project also implemented an electronic toll collection system for  the high-speed segment. The toll was created to help the loss of revenue  because of the antiquated and corruption system of manual toll  collection. The data will be analyzed through explicitly comparing costs  and benefits using an economic efficiency criterion of project  alternatives. This project has four alternatives that need to be  examined, and only two have monetary value, lower the cost of operating  vehicles, and electronic toll collection systems. The other two  alternatives relieve congestion and improve the quality of transport  services are beneficial to society, so it may be challenging to place  money value or quantitative data to determine the effectiveness of these  last two. There is data on toll collections and traffic volumes on day  to day basis for the three years of operation. Cost-effectiveness  analysis (CEA) can be utilized to compare the cost of alternative  interventions to achieve an outcome/impact for roadways maintained  (i.e., significant high-speed overpass extension) (McDavid et al.,  2019). Moreover, CEA provides a relatively simple approach for comparing  the cost-effectiveness of interventions with a common outcome (McDavid  et al., 2019).

McDavid  et al. (2019), provides nine steps for CEA Evaluations that will be  used for this project evaluation, which is the following:

List  the four alternatives in this project (i.e., prevention of congestion  on the highway, lower the cost of operating vehicles, improve the  quality of transport services, and electronic toll collection). 

  • Decide how the community benefit from the new highway and electronic toll collection and the cost of the new highway. 

Categorize  and catalog the costs and benefits from the data of the electronic toll  collection and traffic volumes that are available daily. 

Predict costs and benefits quantitatively over the three years of the project. 

Monetize  by determining the original cost of building the highway and the toll  collection and traffic volumes. The real benefits of quantifying with  less congestion on the highways, improvement of transport services, and  environmental impact. 

  1. Select  a discount rate with the arithmetical application of the project and  provide a sound theoretical foundation for quantifying the project's  benefits. 
  2. Compare  the cost with the project (i.e., revenue is needed for past corruption)  and compute the present value of the four alternatives.   
  3. Perform  sensitivity analysis of the possible ranges of the variables. Test  assumptions for their impact on the overall net present benefit  calculation. 
  4. Make a recommendation for the project's effectiveness and possible improvements if the evaluation suggests they are needed. 
  5. In  conclusion, CEA evaluation can provide an in-depth analysis of the cost  and benefits of the project and provide future possibilities.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer



Response to Tammy Joe
Institutional Affiliation




I agree with you that the embracement of cost-effective evaluation can be appropriate in
determining the effectiveness of the el...

Goes above and beyond expectations!


Similar Content

Related Tags