Discussion
The modified benefit cost ratio places disbenefits in the
Answer: B
Correct answer: denominator, added to costs
\[ B/C_{mod} = \frac{B}{C + D}. \] The modified convention treats a disbenefit as a cost borne by the public rather than as a benefit forgone. Since it moves a positive quantity from being subtracted above to being added below, it always gives a smaller ratio than the conventional form for an acceptable project.
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