Question: Given the cash flows below for two mutually exclusive projects, what is the B/C ratio and which project should you select if the MARR is

Given the cash flows below for two mutually exclusive projects, what is the B/C ratio and which project should you select if the MARR is 6%?

Project A: Cash flows for years 0 6: (-$2000), $500, $500, (-$1000), (-$1000), $3500, $4000.

Project B: Cash flows for years 0 6: (-$3000), $0, $1000, (-$500), $1800, (-$3500), and $9000.

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