Four mutually exclusive revenue alternatives are being compared using the B/C method. Which alternative, if any, should be selected? Incremental B/C when compared with alternative A с Alternative Initial cost B/C ratio vs. "Do Nothing" B D

Four mutually exclusive revenue alternatives are being compared using the B/C method. Which alternative, if any, should be selected? Incremental B/C when compared with alternative A с Alternative Initial cost B/C ratio vs. "Do Nothing" B D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Four mutually exclusive revenue alternatives are being compared using the B/C method. Which alternative, if any, should be selected?
Incremental B/C when compared with alternative
A
OOOO
A
B
с
D
Alternative
ABCD
Initial cost
15
18
30
35
B/C ratio vs. "Do
Nothing"
1.52
0.92
1.31
1.47
B
0.95
C
0.71
1.85
-
D
0.89
1.31
1.35

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