A nonprofit government corporation is considering two alternatives for generating power: Alternative A. Build a coal-powered generating facility at a cost of $20000000. Annual power sales are expected to be $1000000 per year. Annual operating and maintenance costs are $200000 per year. A benefit of this alternative is that it is expected to attract new industry, worth $500000 per year , to the region.
Alternative B. Build a hydroelectric generating facility. The capital investment, power sales, and operating costs are $30000000, $800000, and $100000 per year, respectively. Annual benefits of this alternative are as follows.
Flood-control savings			$ 600,000
Irrigation			$ 200,000
Recreation			$ 100,000
Ability to attract new industry			$ 400,000
The useful life of both alternatives is 50 years. Using an interest rate of 5%, determine which alternative (if either) should be selected according to the conventional B-C ratio method.
a) Which alternative should be analyzed first, comparing to the do-nothing baseline?
b) Which alternative should be selected _______________ because the incremental B-C ratio for the final pair is (please keep two decimal place)__________________?