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\ ECONOMIC ANALYSIS This preliminary and condensed economic analysis is "based upon the following assumptions: 1. That the demands for the period from 1950 to 1970 are as set up in the table "below. The demands indicated for 1950 are "based upon the assumption that one-half of the excess water now "being taken from the artesian wells would "be supplied from Lake Mead "by that date. Also that "by 1970 the amount of water taken from the artesian basin will be limited to the amount of the aquifer recharge, and that all other water will be taken from Lake Mead. D e m a n d Metropolitan Las Yegas A rm y Air Field Basic Magnesium Plant Whitney and Pittman Total 1950 2.5 m. g. d. 1 .8 m.g. d. 6.5 m. g. d. 0.2 m.g. d, ll. 0 m. g. d. 1970 1 1.0 m. g. d. 3.7 m.g, d. 6.5 m.g. d. 1.0 m.g. d. 22.2 m.g, d. Average demand = l6.6 m.g. d. = 6o6o million gal. per yr, 2. That the interest rate for amortization and for sinking fund is 3-1/2 per cent. 3. That the economic life and therefore the period of amortiza­tion of the proposed facilities is as follows: a. Reservoirs and storage tanks - - 30 years. b. Pipe lines and distribution systems - - 20 years, c. Pump, etc., - - 10 years. - 6 -