Laserfiche WebLink
<br />li'J <br /> <br />c. <br />C'". <br />C\l <br />C <br /> <br />The genera.l strategy of treatment as developed by this study <br /> <br />was then applied to the various other schedules of machinery <br /> <br />property subject to operation by the agents, and a percentage <br /> <br />relation was taken between the total annuity for the schedule <br /> <br />and the total cost of the same. These individual percentages <br /> <br />were 1.15, 1.34, 1.45, 1.25, 1.02, 1.09 with a weighted mean of <br /> <br />1.15. <br /> <br />It was felt that beyond these percentages, based on first <br /> <br />cost, some provision should be made for rising price levels and <br /> <br />for incremental costs of replacement as compared .vith first cost. <br /> <br />To meet this consideration an increment of 9% was added, raising <br /> <br />the figure 1.15% to 1.25% which was then adopted as a flat per- <br /> <br />centage of the cost, for the value of the annuity to be paid in <br /> <br />each year over the period for which the amortization is to run. <br /> <br />For the schedule of property comprising the dam and appur- <br /> <br />tenant structures to be operated and maintained by the United <br /> <br />States, a large part of the capital cost, including the dam <br /> <br />itself, was considered not subject to replacement and the annuities <br /> <br />for this schedule bear, therefore, a different relation to capital <br /> <br />costs as compared .vith the above. <br /> <br />For the penstock equipment as a whole, it was assumed that <br /> <br />an 8mount should be accumulated during the 50-year ,Jedod equal <br /> <br />to a weighted mean demand of 5% of the investment cost at the end <br /> <br />of 45 years. This gave an annuity of $6,640 to meet an assumed <br /> <br />replacement cost of $646,118. <br />