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When We Use the Benefit-Cost (B/C) Ratio to Evaluate the Economic

Question 3

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When we use the Benefit-Cost (B/C) Ratio to evaluate the economic viability of a project, the first step is to determine the present value of the project's benefits are costs. Then the Benefit (B) and Cost (C) present values are respectively placed in the numerator and denominator of the B/C Ratio. A project judged as viable if


A) the value of the B/C ratio is within this range: (50%< B/C < 99%) .
B) the value of the B/C ratio exceeds zero: (B/C > 0) .
C) the value of the B/C ratio is within this range: (3%< B/C < 7%) .
D) the value of the B/C ratio is within this range: (0 < B/C < 1) .
E) the value of the B/C ratio exceeds one: (B/C > 1) .

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