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<br />B-259297 <br /> <br />W <br />OJ <br />01 <br />(\.) <br /> <br />operations and maintenance (O&M) costs. The total capital cost is <br />annualized by amortizing it using an 8-percent interest rate over the life of <br />the project. For example, the capital cost of the Las Vegas, Pittman Bypass <br />project was $1,757,000. Amortizing this cost over the expected life of the <br />project (50 years) at 8 percent interest yields an annual cost of $143,371. <br />Adding the annual O&M cost of $50,000 yields a total annual cost of <br />$193,371. The project controls 3,800 tons of salt per year. Thus, the <br />project's cost-effectiveness is $51 per ton: the annual cost <br />($193,371) divided by the amount of salt controlled (3,800 tons). Table 5 <br />shows the cost-effectiveness of BOR'S salinity control projects. <br /> <br /> <br />'"" '. ,.&..- - ~~ <br /> <br /> <br />Page 11 <br /> <br />GAOIRCED-95-58 Salinity Control Projects in the Colorado River Basin <br />