A water conservation project funded by the federal government will have an initial cost (year 0) of $1 million and an upgrade cost of $300,000 in year five.
The annual operating costs are expected to be $100,000.
The water saved is valued at $200,000 in years one through four, and $50,000 each year thereafter through the 10 year life of the project.
If the water saved is considered to be a benefit to the people, the B/C ratio at an interest rate of 6% per year is closest to ?