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40 <br />i <br />2.3 TOTAL STORM PROTECTION BENEFITS <br />The storm protection benefits of the proposed beach restoration projects were <br />calculated over a 30 -year project horizon and reduced to net present value. In <br />order to reduce the annual value to net present values, we utilized a "corrected" <br />interest rate. At the present time, the typical interest rate is five (5) percent. If <br />this five (5) percent rate is used as the discount factor, it would leave out the <br />impact of future inflation. Therefore, the inflation rate must be subtracted from <br />the bonds interest rate, Though the inflation rate has fluctuated over time, the <br />average rate of inflation for the past two (2) years has been (2) two percent. <br />Table 4 presents the results of the storm protection benefits analysis by beach <br />sector for beach restoration improvement projects along Indian River County. On <br />the basis of these calculations, the net present value of the storm protection <br />benefit over a 30 -year project horizon calculated for the proposed beach <br />restoration projects are estimated' at $27,444,285 attributed solely to land loss <br />prevention, new seawall construction, and cost savings for seawall maintenance. <br />