The incremental B/C ratio is always positive when A. the net worth of the benefits and...

 

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The incremental B/C ratio is always positive when A. the net worth of the benefits and costs of the new alternative to be compared with the base is > 0. B. the individual B/C ratio of the new alternative to be compared with the base is greater than or equal to 1. C. the benefits of the new alternative are greater than the base one. D. the base alternative has the least equivalent worth of benefits and costs. Suppose the costs of four MEAs can be ranked in increasing order as CA < CB < CC = CD whereas their B/C ratios are BCA = 0.98, BCB = 1.23, BCC = 1.11, BCD = 2.04. Which of these is/are correct under the analysis of independent project? A. The base alternative after "Do Nothing" is A. B. The best option is to "Do Nothing". C. The base alternative after "Do Nothing" is C. D. The base alternative after "Do Nothing" can either be C or D. Using FW method in repeatability assumption is often avoided because A. it doesn't reflect the true value of the equivalent worth. B. as the study period is increased from the useful life, the truncated cash flows produce erroneous results. C. it is only applicable for coterminated assumption (i.e., equal study periods and useful lives). D. it requires more complicated computations. The incremental B/C ratio is always positive when A. the net worth of the benefits and costs of the new alternative to be compared with the base is > 0. B. the individual B/C ratio of the new alternative to be compared with the base is greater than or equal to 1. C. the benefits of the new alternative are greater than the base one. D. the base alternative has the least equivalent worth of benefits and costs. Suppose the costs of four MEAs can be ranked in increasing order as CA < CB < CC = CD whereas their B/C ratios are BCA = 0.98, BCB = 1.23, BCC = 1.11, BCD = 2.04. Which of these is/are correct under the analysis of independent project? A. The base alternative after "Do Nothing" is A. B. The best option is to "Do Nothing". C. The base alternative after "Do Nothing" is C. D. The base alternative after "Do Nothing" can either be C or D. Using FW method in repeatability assumption is often avoided because A. it doesn't reflect the true value of the equivalent worth. B. as the study period is increased from the useful life, the truncated cash flows produce erroneous results. C. it is only applicable for coterminated assumption (i.e., equal study periods and useful lives). D. it requires more complicated computations.

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The incremental B C ratio is always positive when the benefits ... View the full answer