Modified B/C ratio using Present worth:

The modified benefit-cost ratio of the public project is calculated as follows;

Modified B/C ratio = 1.257

Modified B/C ratio using Annual worth:

Conventional B/C ratio = 1.257

Modified B/C ratio using Future worth:

Modified B/C ratio = 1.257

The modified benefit-cost ratio of the public project is found to be 1.257.

As observed from above calculations, the B/C ratio of the project from both methods (conventional and modified) is greater than 1.0, although the value is different. It may be noted here that, although the magnitude of benefit-cost ratio differs between two methods i.e. conventional B/C ratio and modified B/C ratio, but the decision to select or not a project is not changed by use of any of the two methods.