1. What makes a Net Present Value acceptable and why do we use it in project evaluation? 2. What does the Benefit Cost Ratio tell you about a project and how would you explain a BCR of 1.76 as a profitability index? 3. What is the discount rate and how does it change with an investment's risk? 4. Why might a project team have to revise the assumptions it makes in a cost/benefit analysis? (Hint: Think how assumptions may change --- risks, competition, new technology, etc.) 1. What makes a Net Present Value acceptable and why do we use it in project evaluation? 2. What does the Benefit Cost Ratio tell you about a project and how would you explain a BCR of 1.76 as a profitability index? 3. What is the discount rate and how does it change with an investment's risk? 4. Why might a project team have to revise the assumptions it makes in a cost/benefit analysis? (Hint: Think how assumptions may change --- risks, competition, new technology, etc.)