The Report uses the Net Present Value (NPV) measure to compare the benefits and costs of the TTC project. Calculating NPV requires that all benefits and costs over the project's life-cycle to be discounted to the present using an appropriate discount rate. The Report mistakenly assumes that a 3% real (inflation-adjusted) discount rate reflects the actual opportunity cost of capital. While a 3% real discount rate may be appropriate if the TTC project were being financed entirely by the State of Texas, it does not accurately reflect the cost of capital for a project that is to be financed, in large part, by private road developers. According to the TTC-35 Master Development Plan, the private developer will pay all capital investment costs, including approximately $5.9 billion in initial engineering. Thus, the discount rate needs to reflect the private developers cost of capital - not the State's. Present values of costs and benefits 25 years in the future can be change by more than a factor of 5 depending on the discount rate used.