LCCA Elements: Recommendation for Discount Rate

LCCA Elements: Recommendation for Discount Rate

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Published: 7/27/2022
Pages: 2

Conventional guidance from the Federal Highway Administration (FHWA) and industry has supported use of the Office of Management and Budget’s (OMB) real interest rate to calculate the discount rate used in LCCA. However, a reexamination of this guidance is required due to a phenomenon that occurred in December 2020, when a negative real interest rate was reported for the first time in history.

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