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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