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<br />. <br /> <br />{" ."'" (" f) <br />.:)v,;,b <br /> <br />Report of the Regional Director <br /> <br />Benefits <br /> <br />71. The economic justification of any project can be <br />tested by a benefit-cost ratio which measures the benefits <br />obtainable contrasted with the attendant Federal costs of <br />bringing about those benefits. The net Federal project <br />investment consists of the total construction cost plus <br />interest at the rate of 2-1/2 percent during construction <br />less the present worth of the hundredth-year terminal sal- <br />vage value of principal proj ect works. That investment is <br />translated ipto an annual equivale~t by a~ortization over <br />100 years at 2-1/2 percent. The annual project investment <br />cost is obtained by adding to the annual equivalent the <br />adjusted annual operation, maintenance, and replacement <br />expense. <br /> <br />Annual benefits <br /> <br />. <br /> <br />Irrigation . <br />Power 0 0 . .. <br />Municipal water. <br />Flood control. . <br />Sediment control <br />Total annual benefits <br /> <br />$ 3,339,000 <br />4,064,000 <br />1,662,000 <br />583,000 <br />141,000 <br />$ 9,789,000 <br /> <br />Annual costs <br /> <br />Project investment . . <br />Adjusted O.M.&R. . . . <br />Total annual costs. . <br /> <br />. . <br /> <br />$ 4,165,000 <br />1,403,000 <br />$ 5,568,000 <br /> <br />. <br /> <br />BENEFIT-COST RATIO: 1.76 to 1.00 <br /> <br />72. The preceding calculation includes direct and <br />indirect benefits for the Initial D5velopment. It is <br />significant that the sum of direct irrigation benefits <br />to farmers of ~1,065,OOO, direct power benefits of <br />$2,375,000, and benefits to municipal water, flood con- <br />trol, and sediment control is sufficient to support the <br />annual project costs. <br /> <br />. <br /> <br />R <br /> <br />26 <br /> <br />, <br />