In evaluating three mutually exclusive alternatives by the B/C method, the alternatives were ranked A, B, and C, respectively, in terms of increasing cost, and the following results were obtained for overall B/C ratios: 1.1, 0.9, and 1.3. On the basis of these results, it is correct to: (a) Select only alternative A (b) Select only alternative C (c) Compare A and C incrementally (d) Select alternatives A and C

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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In evaluating three mutually exclusive alternatives
by the B/C method, the alternatives were ranked
A, B, and C, respectively, in terms of increasing
cost, and the following results were obtained for
overall B/C ratios: 1.1, 0.9, and 1.3. On the basis of
these results, it is correct to:
(a) Select only alternative A
(b) Select only alternative C
(c) Compare A and C incrementally
(d) Select alternatives A and C

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