on the full valuation of the cottage at a tax rate of $30 per thousand. The 

 market value was amortized at 7 percent over a 20-year period. 



A.5 Surface- and Ground-Water Supply Costs 



The economics of groundwater versus surface-water supplies were compared 

 by Arthur D. Jeffrey in Economics of Water Supply in Rhode Island, Agricultural 

 Experiment Station, University of Rhode Island, Kingston, Rhode Island, Mis- 

 cellaneous Publication 62, July 1966. H.H.H. Afifi and V.L. Bassie in Water 

 Pricing, Theory and Practice in Illinois, Bureau of Economic and Business Re- 

 search Bulletin Series No. 93, 1969, developed cost of water supply by source 

 and size of utiHty. These two studies provide information on fixed and variable 

 cost of water supply employed. 



A.6 Waste-Water Treatment Cost 



Data on the relevant industrial waste-treatment costs were taken from "The 

 Cost of Clean Water" series, U.S. Department of the Interior, Federal Water 

 Pollution Control Administration. These data were adjusted for time and location. 



Data on variable cost for municipal water treatment were from The Cost of 

 Clean Water and its Economic Impact, Vol. 1, 1969, Federal Water Pollution 

 Control Administration, U.S. Department of the Interior, page 85. Fixed costs 

 are from studies conducted in Illinois, adjusted by a time and location price 

 index. 



A.7 Interest Payments and Length of Loans 



Interest rates were classified according to three uses. There were municipal 

 or governmental bond issues, industry, and private consumer units. The interest 

 rates employed were approximations under reasonable assumptions with regard 

 to length of run and security of the borrower. The interest charges were as 

 follows: government (local), 5 percent per annum; industrial firms, 6 percent; 

 and private individuals, 7 percent. 



In view of recent trends in interest rates and action of federal governmental 

 agencies in money markets, these interest charges seem reasonable for the decision- 

 making unit involved and over the time horizon that loans were usually made. 

 Maturity of loan varied with type of structure. 



A.8 Income Multipliers 



Income multipliers were taken from "Estimated Impact of Military Cutbacks 

 on a Regional Economy," by W. R. Henry and C. T. K. Ching, Rhode Island 

 Business Quarterly, Volume 7, No. 3, September 1971, and based on income 

 multipliers for the seacoast region of New Hampshire and Maine, 1964. 



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