A city government is considering increasing the capacity of the current wastewater treatment plant. The estimated financial data for the project are as follows:

Description                                                      Data

Capital investment…………………………$1,200,000

Project life………………………….................25 years

Incremental annual benefits………………...$250,000

Incremental annual costs……………………$100,000

Salvage value…………………………...........$50,000

Discount rat………………………….......................6%

Calculate the benefit–cost ratio for this capacity expansion project.