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The following data are available for two mutually exclusive projects: Complete parts (a) through (e) below. a. Compute the benefit-cost ratios for both projects. The
The following data are available for two mutually exclusive projects: Complete parts (a) through (e) below. a. Compute the benefit-cost ratios for both projects. The ratios for projects A and B, respectively, are and 1.343 . (Type integers or decimals rounded to three decimal places as needed.) b. Compute the modified benefit-cost ratios for both projects. The ratios for projects A and B, respectively, are 2.382 and 1.878 . (Type integers or decimals rounded to three decimal places as needed.) c. Compute the benefit-cost ratio for the increment between the projects. Select the correct choice below and, if necessary, fill in the answer box to complete your choice. A. The ratio is (Type an integer or decimal rounded to three decimal places as needed.) B. The ratio is undefined. d. Compute the present worths of the two projects. The present worths for projects A and B, respectively, are $ and ? (Round to the nearest whole number as needed.) e. Which is the preferred project? Explain. because the benefit-cost ratio for the increment is undefined, but this project has a greater present worth of benefits
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