9. 7.14 TxDOT is considering the construction of a scenic byway through a rural area in West Texas. The 12 km road is expected to cost $2.5 million per km, with annual upkeep estimated at $75,000 per year. The improved accessibility is expected to result in additional income to businesses from tourists of $4,400,000 per year, but disbenefits of

$130,000 per year have been identified. If the road is expected to have a useful life of 40 years, calculate the conventional B/C ratio at an interest rate of 8% per year to determine if the project is economically acceptable.Page 217