The Bureau of Mines studied the application of the concepts and methods of cost-benefit analysis to the problem of ranking alternative applied research projects. Procedures for measuring the different classes of project costs and benefits, both private and public, are outlined, and cost-benefit calculations are presented, based on the criteria of probability of success and internal rate of return. Because of increasing concern about environmental effects, the methodology and data requirements for estimating project-related pollution costs are discussed. Also, a case study of cost-benefit analysis for a heavy metals program is presented. A bibliography of government publications, books, pamphlets, and articles is appended. (Author/JY)