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<br />. <br /> <br />. <br /> <br />. <br /> <br />B~bFIT-COST MiALYSIS <br /> <br />The economic desirability of developing the Colorado River Storage <br />project and participating projects was measured by a comparison of antici- <br />pated benefits from a National standpoint and the Federal costs of devel- <br />opment. Both benefits and costs were converted to average annual <br />equivalent values at 2 1/2 percent interest over a 100-year period begin- <br />ning with the initial operation of each individual storage unit and par- <br />ticipating project. <br /> <br />Benefi ts <br /> <br />The benefit-cost comparisons were based on consideration of all bene- <br />fits from the authorized developments that could be evaluated in monetary <br />terms, including substantial benefits from irrigation and power and <br />smaller amounts of benefits f~om nlunicipal and industrial water, flood <br />control, fish and wildlife conservation, recreation, and other project <br />services. <br /> <br />Irrigation benefits <br /> <br />Irrigation benefits are estimated to average $15,464,000 annually <br />over the 100-year period of analysis. About $6,712,000 represents stor- <br />age benefits assignable to future participating projects, and about <br />$8,752,000 represents benelits estimated for the 11 initial participat- <br />ing projects. <br /> <br />The irrigation benefit used in the cost allocation of the st0rage <br />project is $9,000,000 annu~lly. This estimate is the s~~ of the <br />$6,712,000 for future participating projects and $2,288,000 represent- <br />in€, the value of regulatory storage to the 11 participating projects. <br /> <br />The irrigation benefit from participating projects includes direct, <br />indirect, and public benefits. About $4,309,000 of the total represents <br />direct benefits, measured oy the increase in net farm income that will <br />be realized with project development. Approximately ~2,951,000 repre- <br />sents indirect benefits, measured by the incre~sed profits of businesses <br />handling, processing, 3Jld market,ing products from tJce developments and <br />o"f entel'prises supplying goods and servtces tG :!)I.ojt:~t far:ns. The <br />remaining ~1,492,OOO will be of a public nat'ue reali3ed from the <br />increase or imrrovement in community facilities' and services and stabi- <br />lization of the local and regional econoIDif. <br /> <br />Benefits from irrigation were evaluated on the basis of average <br />long-term projected price levels. <br /> <br />26 <br />