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<br />,,-...' <br /> <br />; .~:"::-~, <br />'.' " <br /> <br />'0..;.'; <br />, , <br /> <br />7. In adjusting the over-all national long-term projected prices to <br /> <br />specifiC) areas, the speQific local long-term. pr'ojected prices can usually <br /> <br />be estimated by considering ,that they bear the same relationship to local <br /> <br /> <br />prices during 1949,as the national long-term projected prices bear to <br /> <br /> <br />their average during 1949. This procedure involves an assumption that. <br /> <br />the future prioe relationships between the local area and the Nation as <br />a whole will be the same as those prevailing during 1949. <br />8. Whenever the pr,ojeot production or requirementB are expeoted to <br /> <br />influenoe market prioeB Bignificantly, the use of a price about midway <br /> <br />between those expeotedwith and, without the project is reoommended as <br /> <br />justified to r~flect ~he public values involved. This may require con- <br /> <br /> <br />sultation with appropriate agencY representatives on the Arkansas-White- <br /> <br /> <br />Red Basins Inter-Agenoy Committee or groups thereof. <br /> <br /> <br />9. A prooedure for establishing long-term projeoted land values <br /> <br /> <br />is needed. Determination of land ,values will be made at the field level <br /> <br />by the best available, information., <br /> <br />Interest and Disoount Rates and Risk Allowance, <br /> <br />A 2t-percent interest rate ~hould be used in oalculating the an- <br /> <br />nual cost of initial Federal investments and in oonverting replacement <br /> <br />oosts to annual equivalents. <br /> <br />..' , J. <br />A rate of ~ peroent should, also be used <br /> <br />for caloulating the annual cost of non-Federal public investment. For <br /> <br />private investments and for discounting deferred benefits,.a rate of <br /> <br />four peroent should be used. <br /> <br />Disoount rates should be applied where applicable. Economiooosts <br /> <br />and benefits are to be expressed on an average annual uniforrn:basis and <br /> <br /> <br />thoBe which do not so aocrue are to be disoountedto'thisbasis. <br /> <br />8 <br />