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<br /> Example I
<br /> COST ALLOCATION
<br /> SEPARABLE COSTS - REMAINING BENEFITS METHOD
<br /> Flood, Fish and Recre-
<br /> Item Irrigation , Power Control Wildlife ation Total
<br /> ----r- ---r ~ '-r- ~ -r
<br /> 1. Benefits 10,000,000 5,000,000 2,000,000 ( 1) (1) 17,600,000 "
<br /> .'.....
<br /> .~, ...;,..'
<br /> 2. Alternate Costs 12,000,000 5,000,000 1,500,000 100,000(2) , 500,000 19,100,000
<br /> 3. Benefits limited by
<br /> alternate cost
<br /> ( les ser of items ,1 &
<br /> 2) 10,000,000 5,000,000 1,500,000 100,000 500,000 17,100,000
<br />-I=" 4. Separable Costs 5,000,000 1,000,000 500,000 10,000 100,000 6,610,000
<br /> 5. Remaining Benefits 5,000,000 4,000;000 1,000,000 90,000 400,000 10,490,000
<br /> 6. Percent of'total
<br /> remaining benefits 47.6 38.2 9.6 .8 3.8 100.0
<br /> 7. Allocated Joint
<br /> 4,469,640 ' , 3,568,980 901,440 356,820
<br /> Costs 75,120 ' , '9,390,000:;
<br /> 8. Total Allocation 9,469,640 4,586,980 1,401,440 85,120 456,820 16,000,000(3)
<br /> Note: ( 1) Judgment , decision indicates that value of benefit considered to at
<br /> least equal alternative cost.
<br /> (2) Alternative cost considered justified on r-a9is of judgment of needs.
<br /> (3) Project benefit cost ratio 1.1 to 1.0.
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