|
<br />.
<br />
<br />0177
<br />
<br />Economic and Financial Analyses
<br />
<br />Costs
<br />
<br />Project costs
<br />
<br />The total project cost estimate for the Narrows Unit amollilts to
<br />$61,820,000 and consists of the following principal components:
<br />
<br />Dam and reservoir including
<br />general property . . . . . . . .
<br />Fish and wildlife management area.
<br />Recreation development - initial
<br />Jackson Lake rehabilitation . .
<br />Subtotal - initial development
<br />Future recreation facilities
<br />Total project costs .. . .
<br />
<br />$56,410,000
<br />2,935,000
<br />1,210,000
<br />125,000
<br />60,650,000
<br />1,140,000
<br />$61, 520 , 000
<br />
<br />.
<br />
<br />For purposes of economic analysis it is necessary to adjust the
<br />project cost estimate by discounting the costs of future recreation
<br />facilities to year one of Narrows Unit operations. The sum of
<br />$1,140,000 for those facilities is scheduled in four equal increments
<br />of $285,000 to be completed and placed in service in years 11, 21,
<br />31, and 41, respectively. As shown in table 23 the recreation facili-
<br />ties' costs discounted to year one amount to $560,000 which, when
<br />added to the cost for initial development, results in an adjusted
<br />total project cost of $61,21fO,000 for economic analysis.
<br />
<br /> Table 23.--Discounted future recreation costs
<br /> Initial Annual
<br />Item Unadjusted year of Present worth equivalent
<br /> cost year 1
<br /> service cost
<br /> CAPITAL COSTS
<br />Increment 1 $285,000 11 $209,600 $ 6,900
<br /> 2 285,000 21 154,000 5,000
<br /> 3 285,000 31 113,200 3,700
<br /> 4 285,000 41 83,200 2,700
<br />Total $1,140,000 $560,000 $15,300
<br />
<br />ANNUAL OM&R
<br />Increment 1 $ $22,700* 11 $ 500,500 $16,400
<br />2 22,700* 2l 359,000 11,800
<br />3 22,700* 31 255,100 8,400
<br />4 22 700* 41 178 00 5 900
<br />Total 0 00 29 3 300 2 500
<br />* Includes 15,000 O&M and 7,700 for replacement reflecting 25-year
<br />life and 3-1/8% interest (annual replacement equals $285,000 times
<br />sinking fund(factor 0.02698)
<br />
<br />.
<br />
<br />86
<br />
|