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You are working with potential sponsors to determine which project your company will pursue. Based on the benefit-to-cost (BCR) ratios, which of the following four projects should you recommend?
Correct Answer: B
When you're asked to use benefit-to-cost (BCR) ratios to select a project, always choose the project with the highest BCR because that's the project that gives you the most benefit for the least cost. An easy way to do it is to divide: Project A has a BCR of 5:2, and 5 / 2 is 2.5. Do that with all four projects, and you find that project C has the highest BCR.