Question: The four mutually exclusive alternatives below are being compared using the B/C method. What alternative, if any, should be selected? Incremental B/C when Compared with

The four mutually exclusive alternatives below are being compared using the B/C method. What alternative, if any, should be selected?

Incremental B/C when Compared with Alternative
Alternative Initial Investment B/C Ratio J K L M
J $40,000 1.1 -
K $50,000 0.96 0.40 -
L $66,000 1.22 1.42 2.14 -
M $90,000 0.89 0.72 0.80 0.8 -

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