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For incremental benefit cost analysis the alternatives are ordered by

  • A.increasing cost
  • B.decreasing cost
  • C.increasing benefit cost ratio
  • D.decreasing total benefit

Answer: A

Correct answer: increasing cost

The analysis works upward from the cheapest alternative, asking of each further increment whether it is justified. That sequence only makes sense in order of increasing cost, with do-nothing as the opening baseline where the project is genuinely optional.

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