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<br />001717 <br /> <br />of operation, maintenance, and replace~ent, is comparable >lith the <br /> <br />annual benefits. The net }'ed~ral project investment consists of the <br /> <br />total construction cOst plus interest during constr'lction less the <br /> <br />present worth of the terminal salvage value of all facilities. The <br /> <br />annual e~uivalent project cOst is obtained by calculeting a yearly <br /> <br /> <br />amortization of the net Federal project investment at 2-1/2 percent <br /> <br />over the anticipeted useful life of the project, which is 100 years <br /> <br />for the Initial Development. <br /> <br />A comparison of the annual equivalent project costs and monetary <br /> <br />benefits of the Initial Development is presented below: <br /> <br />Annual benefi te <br /> <br />Hydroelectric power <br />Irrigation. . <br />Plood control <br />Municipal water . . <br />Sediment control. . . <br />Recreation. . . . <br />Fish and wildlife . <br />Construction expenditures <br /> <br />Total annual benefibs. <br /> <br />. <br /> <br />. $ <br /> <br />. <br /> <br />. . <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. . <br /> <br />. <br /> <br />Annual costs <br /> <br />Equivalent project costs. . . . . . . <br />Operation, Maintenance & Replacement. <br />Total annual cOsts . . . . <br /> <br />. . $ <br /> <br />. . <br /> <br />Ratio of benefits to cost. with <br />Arkansas River winter ~ater . . . <br />Ratio of benefits to cost. without <br />Arken.as River winter water . . . <br /> <br />to 1.00 <br /> <br />to I.DO <br /> <br />The farm return-farm cOst ratio for the Initial Development is <br /> <br />to 1.00. Tha,t ratio indicates the ability of the irrl~e,tors <br /> <br />to pay assessments. In other words, for every dollar of increased farm <br /> <br />COsts, an additional cents may be available to cover repaym~nt and <br /> <br />contingencies. <br /> <br />57 <br />