### Question
How is the term cost defined?


### Answer
The term **cost** is defined in *49 U.S.C. § 22401* as the following:

> the estimated long-term cost to the Government of a direct loan or loan guarantee or modification thereof, calculated on a net present value basis, excluding administrative costs and any incidental effects on governmental receipts or outlays

#### Citation:
  - *49 U.S.C. § 22401*
  - Heading: **SUBTITLE V-RAIL PROGRAMS > PART B-ASSISTANCE > CHAPTER 224-RAILROAD REHABILITATION AND IMPROVEMENT FINANCING**

