Discussion
For that same project the modified benefit cost ratio is
Answer: D
Correct answer: 1.43
The modified convention puts the disbenefit into the denominator: \[ \frac{500{,}000}{300{,}000 + 50{,}000} = \frac{500}{350} = 1.43. \] The conventional form gave 1.50 on the same figures, and both exceed one - which illustrates the point that the two agree on the decision while differing on the number.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development