Question: Project A and Project B both have the same overall cost of $4M. Project As likelihood of success is 95 percent, Bs chances are 50

Project A and Project B both have the same overall cost of $4M. Project A’s likelihood of success is 95 percent, B’s chances are 50 percent. Project A is expected to generate $11M but will incur $5M maintenance in costs. Project B is expected to generate revenue of $8M and also to provide increased effi ciencies that would save

$5M in expenses. Applying the B/C ratio, which project would you recommend?

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