When asked to compare two alternatives using bc ratio


When asked to compare two alternatives using B/C ratio analysis, use the following method:

a) compute the B/C ratio of each alternative and select the alternative with the HIGHEST B/C ratio

b) compute the B/C ratio of each alternative and select the alternative with the LOWEST B/C ratio

c) compute the incremental B/C ratio and select the alternative based on this ratio.

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Financial Management: When asked to compare two alternatives using bc ratio
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