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<br />VERSION 1.0 1/12/95 <br /> <br />B-C PROGRAM: Guidance <br /> <br />5. <br /> <br />Use your good judgement and make reasonable <br />estimates. Remember that exact data are generally not <br />available. Always use judgement and reasonable <br />estimates whenever exact data are not available. <br />Although it may be necessary to gather additional data for <br />large (high-cost), controversial, or high-visibility projects, <br />or projects with Benefit-Cost ratios near one, many <br />decisions will be clear-cut and can be made with <br />approximate data only. <br /> <br />Summary <br /> <br />The accuracy, validity, and usefulness of any benefit-cost analysis <br />depends on the correctness of the input data. A benefit-cost analysis in <br />which ANY of the input data do not realistically reflect the particulars of <br />the building and mitigation project under evaluation will be inaccurate, <br />and potentially misleading. ' <br /> <br />Many of the data inputs for benefit-cost analysis are not exact numbers, <br />but rather informed estimates or judgements. Nevertheless, all of the <br />data inputs as well as the results must be reviewed for reasonableness <br />and defensibility. <br /> <br />Benefit-cost analyses are subject to review and audit. Therefore, any <br />analyses where the input parameters are not reasonable for the specific <br />building and mitigation project under evaluation may be challenged. <br /> <br /> <br /> <br />5-8 <br />