Question: A municipality has five potential projects to which it can allocate up to $400,000. What should be the favored projects and how much is the

A municipality has five potential projects to which it can allocate up to $400,000. What should be the favored projects and how much is the combined B/C ratio?

Possible projects

Cost

B/C

A

100,000

1.30

B

200,000

1.40

C

300,000

1.50

D

200,000

1.35

E

100,000

1.56

A. B+D with B/C= 1.537

B. C+E with B/C= 1.515

C. A+C with B/C= 1.543

D. A+B+E with B/C= 1.523

or none of rhe above.

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