Once these benefits have been found, the net present value of installing
these bicycle lanes is found, assuming they can be used for 20 years. These
benefits are seen in Table 5. At a discount rate of 3.5%, the net present value of
benefits of building bicycle lanes is $73,974.11 in the low case and $586,910.62 in
the high case. If future periods are valued more (2.5% discount rate), there is a
greater net present value of benefits, and if future periods are valued less (7%
discount rate), there is a smaller net present value of benefits.
Once these benefits have been found, the net present value of installing these bicycle lanes is found, assuming they can be used for 20 years. These benefits are seen in Table 5. At a discount rate of 3.5%, the net present value of benefits of building bicycle lanes is $73,974.11 in the low case and $586,910.62 in the high case. If future periods are valued more (2.5% discount rate), there is a greater net present value of benefits, and if future periods are valued less (7% discount rate), there is a smaller net present value of benefits.
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