Project A and Project B have the same overall cost of $4M. Project As likelihood of success

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Project A and Project B have the same overall cost of $4M. Project A’s likelihood of success is 95 percent; Project B’s chances are 50 percent. Project A is expected to generate $11M revenue but will incur $5M maintenance costs. Project B is expected to generate $8M revenue and efficiencies that would save $5M in expenses. Applying the B/C ratio, which project would you recommend?

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