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<br />Economic and Financial Analyses
<br />
<br />Costs
<br />
<br />Project costs
<br />
<br />The total project cost estimate for the Narrows Unit amounts to
<br />$61,820,000 and consists o~ the ~ollowing principal components:
<br />
<br />Dam and reservoir including
<br />general property . . . . ,
<br />Fish and wildlife management area.
<br />Recreation development - initial
<br />Jackson Lake rehabilitation
<br />Subtotal - initial development
<br />Future recreation facilities
<br />Total project costs ....
<br />
<br />$57,110,000
<br />2,265,000
<br />1,l80,000
<br />125,000
<br />60,680,000
<br />l,140,000
<br />$61,820,000
<br />
<br />For purposes of economic analysis it is necessary to adjust the
<br />project cost estimate by discounting the costs o~ future recreation
<br />~acilities to year one o~ Narrows Unit operations. The sum of
<br />$1,l4o,oOO for those facilities is scheduled in four equal increments
<br />of $285,000 to be completed and placed in service in years 11, 21,
<br />31, and 41, respectively. As shown in table 23 the recreation ~acili-
<br />ties' costs discounted to year one amount to $560,000 which, when
<br />added to the cost for initial development, results in an adjusted
<br />total project cost of $61,2~O,OOO for economic analysis.
<br />
<br /> Table 23.--Discounted future recreation costs
<br /> Initial Annual
<br />Item Unadjusted year o~ Present worth equivalent
<br /> cost service year 1 cost
<br /> CAPITAL COSTS
<br />Increment 1 $285,000 11 $209,600 $ 6,900
<br /> 2 285,000 21 154,000 5,000
<br /> 3 285,000 31 113,200 3,700
<br /> 4 285,000 41 83,200 2,700
<br />Total $1,140,000 $560,000 $18,300
<br />
<br /> ANNUAL OM&R
<br />Increment 1 $ $22,700* 11 $ 500,500 $16,400
<br /> 2 22,700* 2l 359,000 11,800
<br /> 3 22,700* 31 255,100 8,400
<br /> 4 22 700* 41 178 00 5 900
<br /> Total 0 00 3 300 2 500
<br />* Includes 15,000 O&M and 7,700 for replacement reflecting 25-year
<br /> life and 3-1/8% interest (annual replacement equals $285,000 times
<br /> sinking ~und factor 0.02698)
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<br />86
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