From the following data, use the conventional B/C ratio for a project that has a 20-year life to determine if it is economically justified. Use an interest rate of 8% per year.

To the People	To the Government
Annual benefits = $105,000 per year	First cost = $550,000
Annual disbenefits = $10,000 per year	Annual cost = $29,000 per year
	Annual savings = $30,000 per year

The B/C ratio is_____ .

The project is______.