A permanent flood-control dam is expected to have an initial cost of $2.8 million and an annual M&O cost of $20,000. In addition, minor reconstruction will be required every 5 years at a cost of $200,000. As a result of the dam, flood damage will be reduced by an average of $310,000 per year. Using an interest rate of 6% per year, the conventional B/C ratio will be closest to:

(a) 0.46

(b) 1.02

(c) 1.40

(d) 1.96