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Last modified
1/25/2010 6:26:33 PM
Creation date
10/4/2006 11:30:49 PM
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Floodplain Documents
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Title
Benefit-Cost Analysis of Hazard Mitigation Projects
Date
1/1/1996
Prepared For
FEMA
Prepared By
FEMA
Floodplain - Doc Type
Educational/Technical/Reference Information
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<br />VERSION 1.0 1/12/95 <br /> <br />B-C PROGRAM: Level One Analysis <br /> <br />CHAPTER 6 <br />BENEFIT-COST PROGRAM: LEVEL ONE ANALYSIS <br /> <br />Introduction <br /> <br />This chapter provides guidance on conducting a LEVEL ONE <br />(Minimum Data) benefit-cost analysis; defines the data input terms; <br />and provides hints on making reasonable estimates when exact data <br />are not available. The LEVEL ONE Data entries MUST be completed <br />whether or not a LEVEL TWO analysis is subsequently conducted. <br /> <br />See Chapter 5, Benefit-Cost Program: Guidance, for general <br />guidance on benefit-cost analysis, including: the use of exact data vs. <br />estimates, when to use LEVEL ONE (Minimum Data) vs. LEVEL TWO <br />(Detailed) benefit-cost analysis, and other helpful hints. <br /> <br />See Chapter 3, Program Basics, and Chapter 4, Tutorial, for basic <br />information on moving around within data entry screens, entering data, <br />erasing mistakes, etc. See the Quattro Pro Manual for detailed <br />technical information about the spreadsheet program. <br /> <br />Data Differences: Public, Commercial, & Residential Building!... <br /> <br />The Benefit-Cost Program can be used to evaluate hazard mitigation <br />projects for a wide range of building uses, including public/nonprofit, <br />commercial, residential, and mixed-use buildings. <br /> <br />Generally, the data requirements are similar for different building uses. <br />However, any data entries which ,are not applicable to the building <br />under evaluation may be left blank or zeros may be entered. For <br />example, in a completely public/nonprofit or residential building, leave <br />blank or enter zeros for any entries which pertain to business income. <br /> <br />There are six types of avoided damages and losses (I.e., benefits) <br />which are considered in the program: building damages, contents <br />damages, displacement costs, business income losses, rental income <br />losses, and lost public/nonprofit services. In some circumstances it <br />may not be necessary to consider all of these avoided damages and <br />losses, even if they are applicable to the building under evaluation. <br /> <br />6-1 <br />
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