The four mutually exclusive alternatives below are being compared using the B/C method. What alternative, if any, should be selected? Alternative Initial Investment B/C Ratio Incremental B/C When Compared with Alternative J K L M J $40K 1.10 - K $50K 0.96 0.40 - L $66 1.22 1.42 2.14 - M $90 1.07 0.72 0.80 1.11 - Group of answer choices Either L or J Either J or K Select none Alt. J Alt. K Either K or L Alt. L Alt. M Either L or M
The four mutually exclusive alternatives below are being compared using the B/C method. What alternative, if any, should be selected? Alternative Initial Investment B/C Ratio Incremental B/C When Compared with Alternative J K L M J $40K 1.10 - K $50K 0.96 0.40 - L $66 1.22 1.42 2.14 - M $90 1.07 0.72 0.80 1.11 - Group of answer choices Either L or J Either J or K Select none Alt. J Alt. K Either K or L Alt. L Alt. M Either L or M
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
The four mutually exclusive alternatives below are being compared using the B/C method. What alternative, if any, should be selected?
|
Alternative |
Initial Investment |
B/C Ratio |
Incremental B/C When Compared with Alternative |
|||
|
J |
K |
L |
M |
|||
|
J |
$40K |
1.10 |
- |
|
|
|
|
K |
$50K |
0.96 |
0.40 |
- |
|
|
|
L |
$66 |
1.22 |
1.42 |
2.14 |
- |
|
|
M |
$90 |
1.07 |
0.72 |
0.80 |
1.11 |
- |
Group of answer choices
Either L or J
Either J or K
Select none
Alt. J
Alt. K
Either K or L
Alt. L
Alt. M
Either L or M
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