Question

INEED CORRECT ANSWERS FOR EACH QUESTION. Questions will be multiple-multiple choice(maybe more than one answers for each question) .

10. The benefit-cost ratio criterion a. requires that the benefit-cost ratio 0 b. and the NPV criterion yield exactly the same results when comparing projects c, can be derived from the NPV criterion d gives a value in year zero dollars 1. A no-cost improvement occurs when the opportunity cost of resources are zero results from laws and regulations that benefit certairn groups in society for political reasons a. C. usually requires some sort of political compensation irn order to achieve social efficiency is a perfect example of where the criteria of political costs and benefits is important 12. The without case in benefit-cost analysis is important because it tells us what would happen if we do not adopt the new project or policy is the same as the before case does not requires the forecasting of future events important because we need to subtract the net benefits of this case from those of the new project or policy in order to determine incrementa! net benefits b. c. 13. The Positive Net Present Value criterion a. requires that the present value of net benefits 1 b. and the benefit-cost ratio cannot be used to rank projects d gives a value in year zero dollars In the case of nuisance cannot be used to derive the Benefit-Cost ratio criterion 14. a. both the injurer (defendant) and the injured party (plaintiff) have the duty to take precautions against a harm bth case involves harms to property. the legal standard does not come into play with this type of torte liability the injured party must sue the injurer right away or else c. d.

Answer 1

Part A

All the Option are correct

It requires the Benefit Cost ratio to be greater than 1 otherwise we will not accept it.

NPV criteria and Benefit cost ratio criteria yields exactly same results when comparing projects. When NPV is greater than zero, benefit cost ratio is greater than 1, which is what the acceptance criteria under both the method.

Benefit cost ratio can be derived by applying following formula: Benefit cost ratio = (NPV + Cost)/Cost

The benefit cost ratio criteria gives a value in a year zero dollars as in both the cases we calculate present value.