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<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 />I <br />I <br /> <br />INSTITUTIONAL CONSIDERATIONS <br /> <br />The Sanchez Ditch and Reservoir Company has applied to borrow $334,000 from the Colorado <br />Water Conservation Board Construction Fund. The loan from the CWCB is contingent upon the <br />successful negotiation of a contract between the CWCB and the Sanchez Ditch Company. <br /> <br />OPINION OF FEASIBILITY <br /> <br />The selected alternative is technically and fmancially feasible. There are no significant roadblocks <br />which would keep the Sanchez Ditch and Reservoir Company from successfully completing this <br />project. <br /> <br />The Benefit to Cost Ratio is much greater than 1. 0 and the cost per acre-foot of water is also <br />favorable. The following summary provides a breakdown of the unit costs and benefit to cost <br />ratio. <br /> <br />Using a rental rate of $25 per acre-foot for the water <br /> <br />Benefit/Cost = $25 x 20,000 A-Ft x 25 yr/$500,000 = 25 <br /> <br />Total Project Cost <br /> <br />25yr x ($11,500/yr + $8,500/yr) = $500,000 <br /> <br />Cost per Share of Stock <br /> <br />$500,000/20073 = $24.91 <br /> <br />Cost Per Acre-foot Of Water Delivered For An Average Year <br /> <br />$500,000/25 years/20,000 A-Ft = $1.00 <br /> <br />12 <br />