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From the data shown in Table 2 and Table 3 for six mutually exclusive projects, determine which project, if any, should be se

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Answer #1

As Project C, D & E have B/C less than 1, they would not be considered for incremental B/C analysis

Project Left in increasing order of initial cost = A < F < B

B/C of A versus F = 1.02 is greater than 1, so F is selected and A is rejected

B/C of B versus F = 1.20 is greater than 1, so B is selected and F is rejected

Project B should be selected

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