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Electrical Power for Valdez and the Copper River Basin-1981

Electrical Power for Valdez and the Copper River Basin-1981

Electrical Power for Valdez and the Copper River Basin-1981

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ensuing years. To test <strong>the</strong> sensitivity of project economics to changes in <strong>the</strong>discount rate, <strong>the</strong> analysis was reevaluated at a rate of 8 percent. Thehigher figure was used in <strong>the</strong> discounting of both benefits <strong>and</strong> costs, although<strong>the</strong> power values in this alternative analysis are still based on <strong>the</strong> officialrate of 7-3/8 percent. The results of this sensitivity test are presentedbelow:Average Annual Benefits ($1,000)Average Annual Costs ($1,000)Net Annual Benefits ($1,000)Benefit-Cost Ratio4,8673,2341,6331. 50C-10

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