Benefit-Cost Ratio Is Defined as the Ratio Of

question 24

Multiple Choice

Benefit-cost ratio is defined as the ratio of:

• A) Net present value cash flow to initial investment
• B) Present value of cash flow to initial investment
• C) Net present value of cash flow to IRR
• D) Present value of cash flow to IRR

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Definitions:

Subsidy

Financial assistance granted by the government to support or lower the cost of goods and services.

Market Equilibrium

The condition in a market where the quantity of a product supplied is equal to the quantity demanded, often resulting in an equilibrium price.

Output Level

The quantity of goods or services produced by a company, industry, or economy within a specified period.

Private Value

Represents the worth or value of a good or service to an individual consumer, which may differ from its market price or cost to others.