|
0
<br />Source: 1998 Indian River County Beach Users Survey
<br />However, the additional recreational benefit of the project depends upon the
<br />assumptions regarding the impact of beach nourishment. In this report we make
<br />the assumption that the beach will continue to erode and disappear, so the
<br />nourishment project "saves" the beach, then the additional recreational value of
<br />the project can be construed to be the total value of the beach.
<br />Recreational Value Over the Life of the Project
<br />The nourishment projects within Indian River beaches are computed over a 30
<br />year project horizon. Each year, for 30 years, the project generates an estimated
<br />$2,567,4181 in recreational benefits. Obviously, if the annual benefit is multiplied
<br />by 30 years a value of $77,022,528 results. But, because we are looking at
<br />future income flows, and one (1) dollar thirty years from now is not worth one (1)
<br />dollar today, it is necessaiy to reduce or discount these future flows back to the
<br />present. At a three (3) percent real rate of interest, the present value of
<br />recreational benefits over 30 years is $50,322,518.
<br />' This number is an example of rounding. The actual number is $2,567,417.61, which when multiplied by 30 yields
<br />$77,022,528.30 the 30 -year total benefit. The $2,567,418 is reported to the nearest dollar, as are all the values in this
<br />report. The $2,567,417.61 value was used in the calculation. This is just an example of why some of the numbers may
<br />not appear to add in this report. --
<br />JANUARY 19, 1999
<br />11
<br />-55- BOOK 108 FAGE 13
<br />Table 9
<br />Annual Recreational Beach Benefits
<br />Value of a Beach Day
<br />Beach
<br />Sectors
<br />Sector 3 Sector 5
<br />Sector
<br />All
<br />1 and 2
<br />7
<br />County(Island)
<br />$18,763
<br />$33,699 $131,625
<br />$0.00
<br />$184,087
<br />County(Main)
<br />$68,798
<br />$264,998 $702,002
<br />$0.00
<br />$1,035,797
<br />Tourist (Day)
<br />$53,162
<br />$82,716 $307,126
<br />$0.00
<br />$443,004
<br />Tourist (Non Pay)
<br />$34,399
<br />$88,843 $274,220
<br />$0.00
<br />$397,462
<br />Tourist (Pay)
<br />$68,798
<br />$191,472 $246,798
<br />$0.00
<br />$507,068
<br />Total 1$243,919
<br />$661,728 $1,661,770
<br />$0.00
<br />$2,567,418
<br />Source: 1998 Indian River County Beach Users Survey
<br />However, the additional recreational benefit of the project depends upon the
<br />assumptions regarding the impact of beach nourishment. In this report we make
<br />the assumption that the beach will continue to erode and disappear, so the
<br />nourishment project "saves" the beach, then the additional recreational value of
<br />the project can be construed to be the total value of the beach.
<br />Recreational Value Over the Life of the Project
<br />The nourishment projects within Indian River beaches are computed over a 30
<br />year project horizon. Each year, for 30 years, the project generates an estimated
<br />$2,567,4181 in recreational benefits. Obviously, if the annual benefit is multiplied
<br />by 30 years a value of $77,022,528 results. But, because we are looking at
<br />future income flows, and one (1) dollar thirty years from now is not worth one (1)
<br />dollar today, it is necessaiy to reduce or discount these future flows back to the
<br />present. At a three (3) percent real rate of interest, the present value of
<br />recreational benefits over 30 years is $50,322,518.
<br />' This number is an example of rounding. The actual number is $2,567,417.61, which when multiplied by 30 yields
<br />$77,022,528.30 the 30 -year total benefit. The $2,567,418 is reported to the nearest dollar, as are all the values in this
<br />report. The $2,567,417.61 value was used in the calculation. This is just an example of why some of the numbers may
<br />not appear to add in this report. --
<br />JANUARY 19, 1999
<br />11
<br />-55- BOOK 108 FAGE 13
<br />
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