Question: The Adams Construction Company is bidding on a project to install a large flood drainage culvert from Dandridge to a distant lake. If they bid $2,000,000 for the job, what is the benefit-cost ratio in view of the following data? The MARR is 6% per year, and the project's life is 30 years.

Initial construction bid                                                      $2,000,000

Right of way maintenance                                                 $30,000 per year

Major upkeep every six years, starting at the present time      $50,000

Annual benefit to the taxpayers                                          $135,000