Problem 09.020 Benefit/Cost Analysis of a Single Project A consultant, after 3 months of work, reported that the modified B/C ratio for a city-owned hospital heliport project is 17. If the initial cost is $0.5 million and the annual benefits are $180,000, what is the amount of the annual M&O costs used in the calculation? The report stated that a discount rate of 7% per year and an estimated life of 30 years were used. The M&O cost is $