Calculate the B/C ratio for the following cash flow estimates at a discount rate of 8% per year. Is the project justified?
Item Estimate
PW of Benefits, $ 4,200,000
AW of Disbenefits, $/year 45,000
First Cost, $ 1,350,000
M&O Costs, $/Year 280,000
Life, Years 20
The B/C ratio is ( )
The project is( )