You are to choose whether to recommend Project A or B. Both have the same development cost of $4 M. Project A ’ s likelihood of success is 95 percent, while B ’ s chances are estimated to be 50 percent. Project A is expected to generate

$11 M but will incur $5 M in maintenance costs for your company. Project B has expected revenue of $8 M, and is estimated to provide an increase in the efficiency of operations that would lead to a reduction of $5 M in expenses.

Applying the B/C ratio, which project would you recommend to undertake?