In evaluating three mutually exclusive alternatives by the B/C method, the alternatives were ranked A, B, and C, respectively, in terms of increasing cost, and the following results were obtained for overall B/C ratios: 1.1, 0.9, and 1.3. On the basis of these results, it is correct to: (choose one)
(a) Select only alternative A
(b) Select only alternative C
(c) Compare A and C incrementally
(d) Select alternatives A and C
Reject B because B/C ratio < 1.0. Since overall B/C ratio was higher for C than for A and it has a larger cost, the incremental B/C ratio between the two has to be greater than 1.3.
Therefore, select alternative C.
Answer is (b) Select only alternative A
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