Which of the following NOT correct decision rules associated with Benefit-Cost Ratio (BCR) and Net Benefit-Cost Ratio (NBCR)?
Understand the Problem
The question appears to be related to finance, specifically regarding decision rules related to Benefit-Cost Ratios (BCR) and Net Benefit-Cost Ratios (NBCR), as well as definitions of the Internal Rate of Return (IRR) and appraisal criteria. The user seems to be seeking clarification on these concepts.
Answer
Option C is NOT correct.
Option C is NOT correct because a BCR less than one should Reject, not Accept.
Answer for screen readers
Option C is NOT correct because a BCR less than one should Reject, not Accept.
More Information
The decision rule for BCR is generally to reject the project if the BCR is less than one.
Tips
Ensure clarity on decision rules: Accept if BCR > 1, Reject if BCR < 1, Indifference at exactly 1.
Sources
- Benefit-Cost Ratio (BCR): Definition, Formula, and Example - investopedia.com
- Benefit-Cost Ratio (BCR) - Overview, Formula, Example - corporatefinanceinstitute.com
- Benefit-Cost Analysis Decision Criteria: Reconciling Conflicting Advice - aetrjournal.org
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