The cash flows associated with a Death Valley County arroyo improvement project are as follows:

initial cost $650,000; life 20 years; annual maintenance cost $150,000 per year; benefits

$600,000 per year; disbenefits $190,000 per year.

The discount rate is 6% per year. Determine if the project is justified using

(a) the conventional B/C ratio, and

(b) the modified B/C ratio.