A highway construction company is under contract to build a new roadway through a scenic area and two rural towns in Colorado. The road is expected to cost $15,000,000, with annual upkeep estimated at $150,000 per year. Additional income from tourists (Benefits) of $1,400,000 per year is estimated. The road is expected to have a useful commercial life of 25 years. The discount rate to evaluate this project is 4% per year. Hint: Disbenefits = $0 and Annual Upkeep is equivalent to Annual M&O The correct formula to calculate the Modified B/C is: Modified B/C = (benefits - disbenefits/costs Modified B/C = (benefits - disbenefits + M&O) / initial investment Modified B/C = (benefits - disbenefits - M&O) / (initial investment + M&O) Modified B/C = (benefits - disbenefits - M&O) / initial investment A highway construction company is under contract to build a new roadway through a scenic area and two rural towns in Colorado. The road is expected to cost $15,000,000, with annual upkeep estimated at $150,000 per year. Additional income from tourists (Benefits) of $1,400,000 per year is estimated. The road is expected to have a useful commercial life of 25 years. The discount rate to evaluate this project is 4% per year. Hint: Disbenefits = $0 and Annual Upkeep is equivalent to Annual M&O The correct formula to calculate the Modified B/C is: Modified B/C = (benefits - disbenefits/costs Modified B/C = (benefits - disbenefits + M&O) / initial investment Modified B/C = (benefits - disbenefits - M&O) / (initial investment + M&O) Modified B/C = (benefits - disbenefits - M&O) / initial investment