Cost-Benefit Analysis Is Used to Determine the Desirability of Investing

question 13

True/False

Cost-benefit analysis is used to determine the desirability of investing in a project (such as a dam, factory, or public park) by figuring whether its present and future economic benefits outweigh its present and future economic costs.

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Definitions:

Incremental Revenues

The additional income generated from a specific action or decision.

Total Company Net Income

The aggregate net income of a company across all its business operations and segments.

Time Value

A concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Sell Now

A directive or decision to sell an asset or a product immediately, often to capitalize on current market conditions or to avoid future losses.