Action 1-P = $2.8 K(P/F,7%,20) 



$2.8 K(0.2420) = $677.60 



Present Value = $677.60 



Annual Value = $677.60(A/P,7%,30) 



$677.60(0.0837) 

 $56.72 



Replace furnace of pumphouse every 20 years at a cost of $3 K per action (as per Indian 



River Inlet). For Shinnecock, a total of one action will be required in the 30-year project 



life: 



Action 1-P = $3 K(P/F,7%,20) 



$3 K(0.2420) = $726.00 



Present Value = $726.00 



Annual Value = $726.00(A/P,7%,30) 



$726.00(0.0837) 

 $60.77 



Appendix I Capital Replacement Costs, Alternative 2 115 



