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<br />f('[ r ~ ,. FJ .) <br />uv(,~ " <br /> <br />The cost effectiveness of the Glenwood springs Salt company alternative is <br /> <br />~ calculated by: 1) multiplying the estimated number of tons of salt removed in <br /> <br />each quarter by the cost/ton for that specific quarter from Exhibit 1 to yield <br /> <br /> <br />the quarterly payment due; 2) converting each quarterly payment to a present <br /> <br /> <br />value; 3) adding each present value to arrive at a total present value; 4) <br /> <br /> <br />annualizing the present value over the 30-year term of the Agreement at the <br /> <br />current Federal interest rate (8-7/8%); and 5) dividing the annual cost by <br /> <br />the total estimated salt removed in tons per year (estimated at 65,745 tons <br /> <br />based on the plant availability factor). The cost effectiveness of the <br /> <br />proposal resulting from this calculation, is $86.58 at a July 1989 price <br /> <br />level. <br /> <br />2.4.2 Comparison with Other CRWQIP Alternatives. <br /> <br />. <br /> <br />The following table displays salt reduction values 0"'] the cost- . <br /> <br />effectiveness of other salinity control projects in the Colorado River Basin. <br /> <br />For comparison '"ith these projects, the cost-effecti'leness value of the <br /> <br />Glenwood Springs Salt Company Alternative must be adjusted to the same price <br /> <br />level (January 1988) and interest rate (8-5/8%). These computations result in <br /> <br />a cost-effectiveness value of $81.29, which is well within the competitive <br /> <br />range of these other existing, under construction or planned projects. <br /> <br />However, any comparative analysis also should consider other factors ~hich <br /> <br />enhance the desirability of the Glenwood Springs Salt Company alternative. <br /> <br />These factors include no Federal capital investment, no risk, and <br /> <br />privatization of a costly function which trcvlit.i.r_'n~J.l-l' has C'?'?fl ~:-:ClTJsi..:=J_..- <br /> <br />Federal government endeavor. <br /> <br />. <br /> <br />11 <br />