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A benefit cost ratio of exactly one corresponds to a present worth of

  • A.zero
  • B.one
  • C.the first cost
  • D.the annual benefit

Answer: A

Correct answer: zero

\[ \frac{B-D}{C} = 1 \quad\Longleftrightarrow\quad B - D - C = 0. \] The two criteria are the same statement written differently, which is why benefit cost analysis and present worth analysis never disagree about whether a single project should proceed.

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