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. SUMMARY OF PROCEDURES FOR ECONOMIC AND FINANCIAL ANALYSIS and municipal and industrial water are based on the cost of the most eco- nomical single-purpose alternative that is likely to be developed in the absence of the project and that would provide benefits comparable to those of the project. Flood control, recreation, and fish and wildlife benefits are evaluated by the Co~s of Engineers, National Park Service, and Fish and Hildlife Service, respectively. (7) A 2 1/2 percent interest rate is used in the benefit cost and cost allocation analyses, except ~~at an interest rate of 6 1/4 percent for private financing is used in estimating alternative power costs and annual power benefits. (8) Taxes ~re included in the estimated cost of the most economical alternative for project power in evaluating pmler benefits. Accordingly an amount equal to the taxee is included in the cost of project power in benefit-cost comparisons. No provision for payment of a tax equivalent is made in power repayment studies. (9) All costs of past investigations and construction costs paid from contributed funds are excluded from the benefit-cost analysis. Con- tributed funds and expenditures from the Colorado River Development Fund are excluded from the cost allocation and repayment analyses. . (10) In the benefit-cost analysis a share of the cost of the stor- age project is apportioned to irrigation and other water-consuming uses initiated subsequent to 1949, the year the Upper Colorado River Basin Compact became effective. (11) Costs are allocated by the separable cost-remaining benefits method except that only separable oosts a:'e allocated to recreation and fish and wildlife. (12) Repayment of all reimbursable costs of units and participating projects is based on a 50-year period following completion of each unit, project, or separable feature thereof, with appropriate development per- iods in the case of irrigation. The exceptions to this are in the repay- ment of the Paonia and Eden projects for which repayment periods of 68 and 60 years, res:pective1y, have been authorized. The costs allocated to flood control, recreation, and fish and wildlife are nonreimbursable. Irrigation costs are repayable without interest. Costs allocated to po,'er and municipal and industrial use, including interest during construction, are repayable with interest. In this study an interest rate of 2 7/8 percent is used in the repayment calculations in all instances where costs are repayable ,ti th interest. This rate has been officially detennined in the manner prescribed by law as applicable to the Glen Canyon, Flaming Gorge, and Navajo units. An official determination of rates applicable to the Curecanti unit and to participating projects haa not yet been made. . 26