WSP11629

• File Number: 8112.600
• Description: Arkansas White Red Basins Interagency Committee - AWRBIAC -- Reports
• Basin: Arkansas
• Water Division: 2
• Date: 1/16/1952
• Title: Application Procedures for Economic Evaluation of Projects - Second Progress Report of the Work Group on Benefits and Costs - AWRBIAC
• Water Supply Pro - Doc Type: Report/Study

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5. The relationship of projeoted prioes to base period prioes for

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products or groups of produots shown in tables 2~nd ~ (appendix I) may

be used for oomputing price projections for mmilar items not inoluded

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in the tabulations. The interim price level, 1949 aver~geo~lendar

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year prices. will oontinue as the base period for ~omputi~g8.ddi tio rla 1

projections. When field offices convert from 1949 average oalendar

year prices to long-term projected prices. conversion factors shall be

developed for individual items or for major groups of items suoh aB

machinery prices or prices paid by fa~ers (inoluding interest, taxes.

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and wage rates). Conversion factors can be oomputed from data oon-,

tained in tables 2 and ~ (appendix I) using 1949 pric'eB as'the base.

For example (table 2), the 1949 price ror beef oattle was $19.90 per

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hundred weight and the long-term projected price is $17.25. Thus.

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the conversion faotor would be $17.25 divided by $19.90 equals .866.'
6. Whenever long-term unit prices ~~e needed, 1949 average oalen~

dar year prices will be uB,ed as ,a b,ase 0 Appropriate conversion factors

based on the data 'Containe,d in ta'ol.es 2 andj (appendix I).will be .used

to change unit prices to long-term projected priees ,when required .' For

individual oonmodities not shown in the ta.bles, appropriate over_ll

adjustment factors may he calculated. As an illustration. the,factor

for grain sorghums may be oomputed as follows:

1949 average price of grain Borghum (West Central States) is
$1.95 per hundred weight. From table 2, corn may be used as the
oloBest representative item for grain sorghum. (If an over-all
item for feed grains is available, its use would be more appro-
priate.) Thus: Long-termprojeoted price of oorn is $l.~O and
1949 average prioe of oorn is $1.17. The faotor is $1.~0 divided
by $1.17 equals 1.11 factor for grain sorghum and the estimated
long-term projected price of grain sorghums would be $1.95 timeB
1.11 equals $2.16 per hundred weight.

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