When conducting incremental analysis, what step must always be taken immediately

Question

When conducting incremental analysis, what step must always be taken immediately prior to beginning the pairwise comparisons?

OPTIONS:

Order the alternatives from highest to lowest initial investment

Order the alternatives from lowest to highest initial investment

Order to alternatives from lowest to highest internal rate of return

Order the alternatives from lowest to highest present worth

Order the alternatives from highest to lowest annual worth

Order the alternatives from highest to lowest present worth

Order the alternatives from lowest to highest annual worth

Order to alternatives from highest to lowest internal rate of return

Order the alternatives from highest to lowest salvage value

Order the alternatives from lowest to highest salvage value

Explanation / Answer

When conducting incremental analysis the alternatives must be ordered from lowest to highest initial investment taken immediately prior to beginning the pairwise comparison.

Hence the correct option is B.

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