When Deciding Among Mutually Exclusive Projects, a Public Manager Should

question 14

Multiple Choice

When deciding among mutually exclusive projects, a public manager should choose:

• A) all projects that have benefit-cost ratios greater than one.
• B) all the projects that have positive net benefits.
• C) the project with the greatest benefit-cost ratio.
• D) the project with the greatest positive net benefit.
• E) the project with the lowest total cost.

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Definitions:

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.

Interest Rate Risk

The risk of losses due to fluctuations in interest rates that can affect investment values and borrowing costs.

Time To Maturity

The duration until a financial instrument, such as a bond or loan, reaches its due date and the principal must be repaid.

Increases

Describes an upward trend in numerical value or volume.