2. The A and the B Imigation Districts joined forces to construct a water supply reservoir. By enlarging the reservoir, the two districts were also able to provide flood control for the downstream town, having a capitalized benefit of RM 10.28 Million. The A Irrigation District receives a capitalized benefit of RM 19.275 Million per year from its water supply. The B Imigation District that has lower-value crops grown receives a capitalized benefit of only RM 10.28 Million from its water supply. The project has a first cost of RM 12 Million for the reservoir, and RM 3 Million for the canal from the reservoir to the point where the water going to the two districts separates. These costs must be divided among the two irrigation districts and the Federal Government, which will pay for flood control. Alternative designs reveal the reservoir to cost RM 10 Million if it provides only irrigation water, RM 10.5 Million if no water is delivered to the A Irrigation District, and RM 8.5 Million if no water is delivered to the B Irrigation District. Alternative designs reveal that a canal serving only the A Irigation District would cost RM 1.5 Million and that a canal serving only the B Irrigation District would cost RM 2.5 Million a) Calculate the separable and joint costs allocated for the A Irrigation District, B Irrigation District, and the Federal Government to construct the reservoir and canals. b) Costs of alterative projects serving each center are determined. Flood control can be provided by channel improvement costing RM7 Million The A Irrigation District can be served by water from a different river at a cost of RM 9.5 Million The B Irrigation District can be supplied for RM 20 Million Estimate the cost allocation for the multipurpose reservoir project using the Remaining Benefit Method. 2. The A and the B Imigation Districts joined forces to construct a water supply reservoir. By enlarging the reservoir, the two districts were also able to provide flood control for the downstream town, having a capitalized benefit of RM 10.28 Million. The A Irrigation District receives a capitalized benefit of RM 19.275 Million per year from its water supply. The B Imigation District that has lower-value crops grown receives a capitalized benefit of only RM 10.28 Million from its water supply. The project has a first cost of RM 12 Million for the reservoir, and RM 3 Million for the canal from the reservoir to the point where the water going to the two districts separates. These costs must be divided among the two irrigation districts and the Federal Government, which will pay for flood control. Alternative designs reveal the reservoir to cost RM 10 Million if it provides only irrigation water, RM 10.5 Million if no water is delivered to the A Irrigation District, and RM 8.5 Million if no water is delivered to the B Irrigation District. Alternative designs reveal that a canal serving only the A Irigation District would cost RM 1.5 Million and that a canal serving only the B Irrigation District would cost RM 2.5 Million a) Calculate the separable and joint costs allocated for the A Irrigation District, B Irrigation District, and the Federal Government to construct the reservoir and canals. b) Costs of alterative projects serving each center are determined. Flood control can be provided by channel improvement costing RM7 Million The A Irrigation District can be served by water from a different river at a cost of RM 9.5 Million The B Irrigation District can be supplied for RM 20 Million Estimate the cost allocation for the multipurpose reservoir project using the Remaining Benefit Method