Oregon is examining how to allocate funding over the next five years and have arrived at four projects that are in contention. The numerical details are listed below (Oregon uses a MARR of 10% for new projects):

Project	105	205	305	405
Initial Cost	2,500,000	2,500,000	3,000,000	2,000,000
Annual Maintenance Cost	250,000	250,000	200,000	300,000
Yearly Benefit	1,000,000	900,000	900,000	1,000,000
Yearly Disbenefit	15,000	10,000	0	100,000
B/C Ratio	1.08	0.98	0.91	1.09

Part A: Which project (or projects) can be immediately eliminated?

Part B: What incremental analysis needs to be completed for these projects?

Group of answer choices

Complete incremental analysis for Project 105-405.

Complete incremental analysis for Project 305-205.

Complete incremental analysis for Project 405-105.

Complete incremental analysis for Project 205-305.

Part C: If we assume we have to compute an incremental analysis between Projects 105 and 405, what would the incremental B/C ratio between the two projects be?

Part D: Based on your incremental analysis in Part C, select the appropriate project and justifying statement.

Group of answer choices

We would select project 405 because the incremental analysis yielded a B/C ratio below 1, and therefore the increase in cost is not justified.

We would select project 105 because the incremental analysis yielded a B/C ratio above 1, and therefore the increase in cost is justified.

We would select project 405 because the incremental analysis yielded a B/C ratio above 1, and therefore the increase in cost is not justified.

We would select project 105 because the incremental analysis yielded a B/C ratio below 1, and therefore the increase in cost is justified.