The near optimization method used by these agencies proceeds as follows: low value of Y

indicates the 1. Consider each combination of section, treatment alternative, and year in the
program period. 2, Calculate the effectiveness, E, of each combination (which is the area
under the performance curve, multiplied by ADT and section length-see Figure 18.9). 3.
Calculate the cost, C, in net present value terms, of cach treatment alternative in each
combination. 4. Calculate the cost-effectiveness, CE, of each combination as the ratio of E/CY
.e., a ratio inverse in concept to the benefit-cost ratio method). 5. Select the combination of
treatment alternative and ycar for each section which has the best CE, until the budget is
exhausted. 6. Calculate the marginal cost-effectiveness, MCE, of all other strategies (i.e..
treatment alternative when) for cach section, as follows: MCE = (E, - EJ/(C, - C.) where E, =
effectiveness of the combination selected in Step 5 E, = effectiveness of the combination for
comparison C, = cost of the combination selected in Step 5 C, = cost of the combination for
comparison 7. If MCE is negative, or if E, < E, then the comparative strategy is climinated
from further consideration; if not, it replaces the combination selected in Step 5. 8. The
process is repeated until no further selections can be made in any vear of the program
.period (i.e., when the budget is exhausted)