One of two alternatives will be selected to reduce flood damage in a rural community in central Arizona. The estimates associated with each alternative are available. Use B/C analysis at a discount rate of 10% per year over a 20-year study period to determine which alternative should be selected. For analysis purposes only, assume the flood damage would be prevented in years 7, 13, and 18 of the study period.

	Retention Pond	Channel
Initial Cost, $	840,000	2,500,000
Annual Maintenance , $/Year	92,000	30,000
Reduced Flood Damage, $	200,000	550,000

The B/C ratio is ()

The alternative that should be selected is the()