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Questions and Answers
What is the primary purpose of a Benefit/Cost Analysis?
What is the primary purpose of a Benefit/Cost Analysis?
- To compare the monetary benefits and costs of a project or decision (correct)
- To assess the technological feasibility of a project
- To evaluate the social implications of a decision
- To analyze the environmental impact of a project
What does the Benefit/Cost Ratio indicate?
What does the Benefit/Cost Ratio indicate?
- The technical complexity of a project
- The social acceptance of a decision
- The efficiency of a project in generating benefits relative to its costs (correct)
- The environmental sustainability of a project
In Benefit/Cost Analysis, what does 'discounting' refer to?
In Benefit/Cost Analysis, what does 'discounting' refer to?
- Ignoring the potential risks associated with a decision
- Adjusting future costs and benefits to their present value (correct)
- Increasing the projected benefits of a project
- Eliminating certain costs from the analysis
