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<br />ir'r ;- <br />ldJ 0 ' 1 <br /> <br />It should also be noted that an additional onfarm investment of <br />$4,030,000 would be required for wells, pumps and motors for a total <br />cost of $96,669,000, including interest during construction. Additional <br />annual operating costs for pumping irrigation water totals $250,000 <br />and would require a total of 5.7 million kWh of energy. While these <br />costs have been netted out of the benefi ts, they are a requi red part <br />of the overall cost for constructing this alternative. <br /> <br />Benefit-Cost Analysis <br /> <br />An evaluation of the annual irrigation benefits relative to the <br />estimated annual equivalent costs results in a benefit-cost ratio <br />of ,82 to 1 based on a lOa-year period of analysis at 6.625 percent <br />interest. The benefit-cost analysis is presented in table 7. <br /> <br />Table 7.--Benefit-cost analysis <br /> <br />Item <br /> <br />Amount <br /> <br />Investment <br />Estimated project cost <br />Estimated interest during construction <br /> <br />Total capital investment <br /> <br />$84,000,000 <br />8,636,000 <br />$92,639,000 <br /> <br />Annual costs <br />Equivalent of investment 11 <br />Annual OM&R costs <br /> <br />Total annual costs <br /> <br />$ 6,147,000 <br />530,000 <br />$ 6,677,000 <br /> <br />Annua 1 benefi ts <br />Irrigation <br /> <br />Total annual benefits <br /> <br />$ 5,451,000 <br />$ 5,451,000 <br /> <br />Benefit-cost ratio <br /> <br />. 82 to 1 <br /> <br />1/ 100 years at 6.625 percent interest - factor .00636. <br /> <br />54 <br />