If the net benefit of Project A is $20 and that of Project B is $15,switching from Project A to Project B ________.
A) reduces the net benefit by $5
B) increases the net benefit by $5
C) reduces the net benefit by $15
D) increases the net benefit by $15

Question

Quizplus · Accepted Answer

Switching from Project A to Project B would reduce the net benefit by $5 because the net benefit of Project A ($20) is higher than that of Project B ($15). Therefore, if we switch from Project A to Project B, we would be choosing the project with a lower net benefit, resulting in a reduction of $5.

If the Net Benefit of Project a Is $20 and That