The Chinese government is considering three new flood control projects on the Huaihe River. Projects A and B consist of permanent dikes. Project C is a small dam. The dam will have recreation and irrigation benefits as well as the flood control benefits. Facts about the three projects are shown in the following table. Each project has a life of 20 years. The MARR is 8 percent.

Project A Project B Project C First cost (millions of yuan) 200 256 416 Annual benefits (millions of yuan) 26.4 33.6 56.8 Annual operating and maintenance costs (millions of yuan) 2.4 2.4 4.0