If Project X has a cost of $6 and provides a benefit of $10 and Project Y has a cost of $25 and provides a benefit of $27,which of the following statements is true?
A) An individual can optimize by choosing Project X.
B) An individual can optimize by choosing Project Y.
C) Switching from Project X to Project Y increases net benefit by $2.
D) Switching from Project Y to Project X decreases net benefit by $2.

Question

Quizplus · Accepted Answer

Project X has a net benefit of $4 ($10 - $6), and Project Y has a net benefit of $2 ($27 - $25). Therefore, choosing Project X, which has the higher net benefit, is the optimal choice.

If Project X Has a Cost of $6 and Provides