8. In evaluating three independent alternatives by 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, 1.3. Based on these results, you should:
a) Select only alternative A
b) Select only alternative C
c) Compare A and C incrementally
d) Select alternatives A and C
9. According to Descartes' rule criterion, how many $i^*$ values are possible for the cash flows
below?
Year
1
2
3
4
Revenue, $
25,000
13,000
8,000
70,000
Costs, $
-30,000
-7000
-6000
-12000
a) one
b) two or less
c) three or less
d) four or less
e) three