Which Statement About the Selection of Mutually Exclusive Projects Using

question 28

Multiple Choice

Which statement about the selection of mutually exclusive projects using the benefit-cost ratio method is true?

• A)The benefit-cost ratio selects the project with the lowest ratio.
• B)The benefit-cost ratio may rank projects differently from the net present value method.
• C)The benefit-cost ratio may select a project,even though it may have a negative net present value.
• D)The benefit-cost ratio will not select a project with a ratio greater than 1.

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Definitions:

Competition Tribunal

A specialized court or tribunal that adjudicates matters pertaining to competition law, including antitrust and monopoly issues.

Competition Act

Legislation designed to promote fair business practices and protect consumers by preventing monopolies and promoting competition.

Bid-rigging

A form of fraud in which competitors agree in advance who will win a bidding process, thus undermining the competition.

Misleading Advertising

Advertising that deceives or is likely to deceive the consumer, often leading to an incorrect understanding or decision.