The first cost of grading and spreading gravel on a short rural road is expected to be $700,000. The road will have to be maintained at a cost of $25,000 per year. Even though the new road is not very smooth, it allows access to an area that previously could be reached only with off-road vehicles. This improved accessibility has increased the property values along the road from $400,000 to $700,000.

The conventional B/C ratio at a discount rate of 6%

per year for a 10-year study period is closest to:

a. 2.5

b. 3.3

c. 4.1

d. 5.8