If two mutually exclusive alternatives have B/C ratios of 1.5 and 1.4 for the lower first-cost and higher first-cost alternatives, respectively: (a) The B/C ratio on the increment between them is greater than 1.4 (b) The B/C ratio on the increment between them is between 1.4 and 1.5 (c) The B/C ratio on the increment between them is less than 1.4 (d) The lower-cost alternative is the better one
If two mutually exclusive alternatives have B/C ratios of 1.5 and 1.4 for the lower first-cost and higher first-cost alternatives, respectively: (a) The B/C ratio on the increment between them is greater than 1.4 (b) The B/C ratio on the increment between them is between 1.4 and 1.5 (c) The B/C ratio on the increment between them is less than 1.4 (d) The lower-cost alternative is the better one
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If two mutually exclusive alternatives have B/C ratios
of 1.5 and 1.4 for the lower first-cost and
higher first-cost alternatives, respectively:
(a) The B/C ratio on the increment between
them is greater than 1.4
(b) The B/C ratio on the increment between
them is between 1.4 and 1.5
(c) The B/C ratio on the increment between
them is less than 1.4
(d) The lower-cost alternative is the better one
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