19. A homeowner is trying to decide which of two furnaces to install to reduce heating costs. Both furnaces have useful lives of 25 years and no salvage value. Furnace A costs $3700 and can be expected to result in $400 savings annually. Furnace B costs $5000 and can be expected to result in $700 savings annually. With the interest rate at 11%, what is the incremental benefit-cost ratio?

a.

2

b.

1.94

c.

1

d.

2.4