Question 5 (10 points) An Army Corps of Engineers project for improving navigation on the Ohio River will have an initial cost of $6,000,000 and annual maintenance of $130,000. Benefits for barges and paddle wheel touring boats are estimated at $820,000 per year while the disbenefits are expected to be $150,000 per year. If the project is assumed to be permanent (i.e., infinite life), calculate the conventional B/C ratio to determine if it is economically justified at 8% per year. OB/C = 1.66 OB/C = 1.10 B/C = 0.66 OB/C = 0.76