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. CHAPTER III INITIAL DEVELOPMENT Irrigation Power Recreation Fish and wildlife Direct benefi ts 1;360,000 1,034,000 336,000 80,000 1,810,000 Total direct, indirect, and public benefi ts 1;684,000 1,034,000 336,000 80,000 2,134,000 Annual Equivalent Costs . Average annual equivalent costs of the Juniper project are estimated at $1,315,000 over a 100-year period of analysis. These costs include the construction costs and interest during construction at 2 7/8 percent, both amortized over a 100-year period using a 2 7/8 percent interest rate; annual operation, maintenance, and replacement costs; and the assigned costs of regulatory facilities of the Colorado River Storage project fig- ured at $2 for each acre-foot of annual stream depletion caused by the Juniper project. Derivation of the annual equivalent costs is shown belovo Project construction cost Interest during construction Total capital investment Annual e'l.ui valent of capital investment Annual operation, maintenance, and replacement costs Assigned annual cost of Colorado River Storage project Total annual equivalent cost $30,328,000 1.690.000 32,018,000 978,000 240,000 97.000 1,315,000 Benefit-cost Ratio and Net Benefits The annual e'l.uivalent direct benefits of the project compare with the total annual e'l.uivalent costs in a ratio of 1.38 to 1 with the benefits exceeding the costs by $495.000 annually. The total annual e'l.uivalent direct, indirect, and public benefits of the project compare with the aver- age annual e'l.uivalent costs in a ratio of 1.62 to 1 vith the benefits exceed- ing the costs by $819,000 annually. Cost allocations . Preliminary cost allocations for the initial development are summa- rized in the table on the following page. The allocations were made by the alternative justifiable expenditure method as discussed in Chapter II. 70