Laserfiche WebLink
<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />The remaining hay (not used to increase the herd) <br />could be directly sold at a net profit of $30/ton, as <br />outlined in the Irrigation Benefits section. This addi- <br />tional annual revenue could be 387.3 tons at $30/ton, or <br />$11,619. Discounting this revenue yields a present value <br />of $115,000. <br /> <br />$11,6l9 x 9.9l48 = $l15,200 <br /> <br />The combination of benefits resulting from calf <br />crop and hay sales results in a net present value of <br />$846,000. <br /> <br />$730,751 + $l15,200 = $845,950 <br /> <br />Using the estimated cost of $850,000 for the reser- <br />voir, a benefit/cost ratio of 1.0 results. <br /> <br />$846,000 / $850,000 = .995 <br /> <br />F. Summary <br /> <br />Positive benefit/cost ratios have been shown in the <br />foregoing analyses. The most optimistic approach shows <br />the $1,065,000 value of the additional 426 cow units <br />carried as a result of the Hyannis Reservoir project more <br />than covers the estimated cost of the project. <br /> <br />The analysis using the combination of benefits will <br />give a realistic benefit/cost ratio of 1.0. <br /> <br /> <br />-42- <br />