Costs that are incurred at the end of a project or period of analysis include:
These costs are relevant to benefit-cost analysis if a project is analyzed over a limited length of time or if two alternative projects have very different service periods or physical components with very different lifespans.
Most transportation projects, such as roads, transit systems, and terminal facilities, are in service for a very long time. Equipment may wear out and be replaced, but the project does not end. In such cases, "end of project" costs are not important because the project does not end and therefore does not have salvage or close-out costs. The residual values of alternate investments are closely related to their values during the period of analysis so that including them would not affect the relative attractiveness of alternate proposals. However, if a project alternative has substantial end of project value that is different from other alternatives or if the end of project value is large relative to the total costs, then it may be appropriate to consider these components. Note that an end of project cost is the net value of the assets. For example, buses may be sold, but the cost of selling them should be deducted from the proceeds.
End of project costs should be discounted in the same manner as other costs.