If Project A has a cost of $5 and provides a benefit of $10,and Project B has a cost of $2 and provides a benefit of $4,then switching from Project A to Project B ________.
A) increases the net benefit by $3
B) decreases the net benefit by $3
C) increases the net benefit by $6
D) decreases the net benefit by $6

Question

Quizplus · Accepted Answer

Calculating the net benefit of Project A, we get $10 - $5 = $5. 
Calculating the net benefit of Project B, we get $4 - $2 = $2. 
Therefore, switching from Project A to Project B would decrease the net benefit by $3 ($5 - $2 = $3).

If Project a Has a Cost of $5 and Provides