Question

The four alternatives described below are being evaluated. If the alternatives are independent and there is no budget limitation, which alternative(s) should be selected based on the B/C analysis?

Alternative	Total Cost in Millions($)	B/C Ratio	Incremental B/C when compared with alternative
			A		B	C	D
A	50	1.50
B	55	0.85	0.55
C	60	1.30	1.40		3.50
D	65	0.70	0.65		0.80	0.05

Answer 1