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~ ,
<br />TABLE 3
<br />-BOAT LAUNCHING FEE $5.23
<br />Le-t~tcHes ;goo
<br />ANNUAL COST $44 ,455
<br />ANNUAL COST ESCALATION 3.10°10
<br />ANNUAL CaROVItTH W4T1= ~ - 2.T0°lo
<br />ANNUAL C03TS 1 5 44,455 $ 45,389
<br /> 2 $ 45,833 $ 46,796
<br /> 3 $ 47,254 $ 48,246
<br /> 4 $ 48,719 $ 49,742
<br /> 5 $ 50,229 $ 51,284
<br /> 6 $ 51,786 $ 52,874
<br /> 7 $ 53,392 $54,513
<br /> 8 $ 55,047 $ 56,203
<br /> 9 $ 56,753 $ 5T,945
<br /> 10 $ 58,512 $ 59,741
<br /> 11 $ 60,326 $ 61,593
<br /> 12 $ 62,196 $ 63,503
<br /> 13 $ 64,125 $ 65,471
<br /> 14 $ 66,112 $ 67,501
<br /> 15 $ 68,162 $ 69,593
<br /> 16 $ 70,276 $ 71,751
<br /> 17 $ '72,453 $ 73,975
<br /> 18 $ 74,700 $ 76,268
<br /> 19 $ 77,015 $ 78,633
<br /> 20 $ 79,403 $ 81,070
<br />The net present value of benefits is then divided by
<br />the net present value of costs to yield the benefit/
<br />cost ratio. The benefit/cost ratio must be greater
<br />than unity (1.00) before public investment in a project
<br />is justified (Table 6).
<br />ANNUAL BENEFITS
<br />Annual base year user days for this project are
<br />34,000 (Table 1 A). The annual percentage growth
<br />rate is .1 % ). Annual benefits are shown in Table 2.
<br />The net present value of benefits is shown in Table
<br />4.
<br />ANNUAL COSTS
<br />Annual costs are shown in Table 3. The net present
<br />value of costs is shown in Table 5.
<br />BENEFIT/COST RATIO
<br />The benefit/cost ratio for this project is 3.30 (Table
<br />6). This means that estimated benefits exceed
<br />estimated costs. The construction of this project is,
<br />therefore, economically justified.
<br />GLOSSARY /DATA SOURCES
<br />1. Annual Base Year User Days -annual boat
<br />launches times average persons aboard a boat.
<br />2. Annual Boat Launches - existing or projected
<br />yearly boat launches at a facility, estimated by
<br />the grantee, or from regional data from the BBS.
<br />3. Average Persons Aboard aBoat -regional
<br />data from the BBS.
<br />4. Annual Percentage Growth Rate -the average
<br />of the low and high boat usage (over the 20-year
<br />life expectancy of the project) derived from boat
<br />forecasts regional data for boats less than 26
<br />TABLE 4
<br />Year Benefits Discount Benefits
<br />Rate
<br />
<br />0 $608,868 1.00 $608,870
<br />1 $625,324 1 A5 $598,400
<br />2 $625,949 1.09 $573,200
<br />3 $626,575 1.14 $549,070
<br />4 $627,201 i.i9 $525,950
<br />5 $627,829 1.25 $503,800
<br />6 $628,456 1.30 $482,590
<br />7 $629,085 ,1.36 $462,270
<br />8 $629,744 i.42 $442,810
<br />9 $630,344 1.49 $424,160 `
<br />10 $630,974, 1.55 $406,300
<br />11 $631,605. 1.62 $389,190
<br />12 $632,237 1.70 $372,810
<br />13 $632,869 1.77 $357,110
<br />14 $633,502 1.85 $342,070
<br />15 $634,135 ~ 1.94 $327,670
<br />16 $634,769 2.02 $313,870
<br />17 $635,404 2.11 $300,660
<br />18 $636,040 2.21 $288,000
<br />19 $636,676 2.31 $275,870
<br />
<br />$8,544,670
<br />The discount rate being used is 4.50%. This is equivalent
<br />to the interest rate being charged by the 17epartment of
<br />Boating and Waterways on its public loans. Present value
<br />is deterr>rned by dividing future benefits by (1+r)",where
<br />r is the discount rate and n is the nun~er of years into the
<br />future.
<br />San Leandro Marina BLF 5
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