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<br />Example II
<br />
<br />COST ALLOCATION
<br />SEPARABLE COSTS - REMAINING BENEFITS MEI'HOD
<br />
<br /> Flood Fish and Recre-
<br /> Item Irrigation Power Control Wildlife ation Total
<br /> ---r- $ ---r- -r-, ,.- -,-
<br />1. Benefit 10,000,000 5,000,000 2,000,000 (1) (1) 17,030,000
<br /> :,',-',}.
<br />2. Alternate Cost 12,000,000 5,000,000 1,500,000 18,500 , oU:'i;~
<br />3. Benefits limited by
<br /> alternate cost
<br /> (lesser of items 1 & 5 ,ObO( 2)
<br /> 2) 10,000,000 5,000,000 1,500,000 25,000(2) 16,530,006
<br />4. Separable Costs 5,000,000 1,000,000 500,000 5,000 25,000 6,530,000
<br />0\
<br />5. Remaining Benefits 5,000,000 4,000,000 1,000,000 10,000,000
<br />6. Percent of total
<br /> remaining benefits 50.0 40.0 10.0 100.0
<br />7. Allocated Joint Costs 4,735,000 3,788,000 947,000 9,470,)00
<br />8. Total Allocation 9,735,000 4,788,oOD 1,4~7,000 5,000 25,000 - 16 000 oc::i<3'
<br />, , t~.)
<br />Note; ( 1) Judgment decision indicates that value of benefit considersd to at
<br /> least equal separable cost.
<br /> (2) Separable costs considered Justified on judgment of needs.
<br /> (3) Project benefit-cost ratio 1.1 to 1.0.
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