|
<br /> Example III
<br /> COST ALIJJCATION
<br /> SEPARABLE COSTS - REMAINING BENEFITS METHOD
<br /> Flood Fish and Recre-
<br /> Item Irrigation Power Control Wildlife ation Total
<br /> ----r- ---r- ---r- ---r- -r -r
<br /> 1. Benefits 10,000,000 5,000,000 2,000,000 (1) 17 500,.'''00
<br /> , ".- ~;.: ...
<br /> 500,000(2) ";',,-'';:'c
<br /> 2. Alternate Costs 12,000,000 5,000,000 1,500,000 19,000,000
<br /> 3 . Benefits limited by
<br /> alternate cost
<br /> (lesser of items 1 &
<br /> 2) 10,000,000 5,000,000 1,500,000 500,000 17,000,000 ,
<br /> ,
<br />.
<br />Q) 4. Separable Costs 5,000,000 1,000,000 500,000 100,000 6,600,000
<br /> ..
<br /> r:
<br /> 5. Remaining benefits ~\:
<br /> (item 3 less item 4) 5,000,000 4,000,000 1,000,000 400,000 10,400,000 .;,
<br /> 6. "
<br /> Percent of total ,j.;,
<br /> remaining benefits 48.1 38;4 9.6 3.9 100.0 "
<br /> ,
<br /> ,
<br /> 4,569,500 3,648,000 9,50G:Y'JO .,.~
<br /> 7. Allocated Joint costs 912,000 370,500 'r:
<br /> "
<br /> ,
<br /> 8. 9,569;500 4,648,oeo 1,412,000 470,5tO 16,100,000 ..
<br /> Total Allocation :~
<br /> , ~
<br /> ),
<br /> "
<br /> -.:;
<br /> Note: (1) JUdgment decision indicates that value of benefit considered to at least ;\
<br /> equal alternative cost. '.
<br /> (2) Alternative cost considered Justified on basis of Judgment. (Project ,
<br /> benefit cost 1.1 to 1.0) . ..
<br /> "
<br />
<br />'. . .... ":.' ',';. ,,-.'.'.~,,(.:....__..~..,,_,:':~,_:_..s......:,..':,, ..: ",.,_,~;",,,,_-,,,. .._~ ,........... .
<br />
|