| Abstract: | ABSTRACT: A retrospective benefit-cost analysis of major water resources projects in the Cumberland River basin was conducted. The U.S. Army Corps of Engineers' projects selected were Dale Hollow, Wolf Creek, Center Hill, and J. Percy Priest Reservoirs. The ex-post performance of the evaluated reservoirs were compared to the ex-ante estimates. Benefits and costs for each project were deflated to their base year and respective average annual values for each of these components were calculated. An ex-post benefit-cost ratio was determined for each project, as well as the combined system. The benefit-cost ratio for each project surpassed unity. The actual ratio as compared to the ex-ante estimate for each project is as follows: Dale Hollow, 1.24 to 1.46; Wolf Creek, 1.40 to 1.53; Center Hill, 1.17 to 2.02; and J. Percy Priest, 1.45 to 1.6. The internal rate of return was also determined for each project. The results obtained for each project are tabulated and discussed with consideration given to factors effecting the economic evaluation of the projects. |
