3. 7.8 From the following data, use the conventional B/C ratio for a project which has a 20-year life to determine if it is economically justified. Use an interest rate of 8% per year.

Table Summary: Table titled consequences represent the data to prove the economic viability of a project. The column headers are marked from left to right as: to the people and to the government.

Consequences To the People To the Government Annual benefits = $90,000 per year First cost = $750,000 Annual disbenefits = $10,000 per year Annual cost = $50,000 per year Annual savings = $30,000 per year