Which of the Following Statements Regarding the Valuing of Costs

question 59

Multiple Choice

Which of the following statements regarding the valuing of costs and benefits is NOT correct?

• A)The first step in evaluating a project is to identify its costs and benefits.
• B)In the absence of competitive markets,we can use one-sided prices to determine exact cash values.
• C)Competitive market prices allow us to calculate the value of a decision without worrying about the tastes or opinions of the decision maker.
• D)Because competitive markets exist for most commodities and financial assets,we can use them to determine cash values and evaluate decisions in most situations.