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) .
Correct Answer:
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Q1: With respect to analyzing the economic viability
Q2: A _would be indifferent between a lower
Q4: The _ is the discount rate that
Q5: Sensitivity Analysis in CBA
A) detemines the consumer
Q6: _ argues that the promise of receiving
Q7: If a project creates direct net benefits
Q8: _is a systematic approach to assessing the
Q9: When a project is supported by sales
Q10: CBA analysts should avoid calculating _ because
Q11: If a proposed project causes an involuntarily
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