Decision Making Techniques

Decision Making Techniques

University

5 Qs

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Decision Making Techniques

Decision Making Techniques

Assessment

Quiz

Engineering

University

Practice Problem

Easy

Created by

Rene Pacturan

Used 2+ times

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5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

45 sec • 5 pts

  1. What does the Benefit-Cost Ratio (BCR) represent in project evaluation?

  1. The internal rate of return

The net present value of a project

The ratio of total benefits to total costs

2.

MULTIPLE CHOICE QUESTION

45 sec • 5 pts

If a project has a BCR of 1.5, what does it imply?

  1. The project has a negative net present value

The project returns 1.5 units of benefit per unit cost

  1. The project breaks even

3.

MULTIPLE CHOICE QUESTION

45 sec • 5 pts

In Decision Tree Analysis, the alternative that has ______ payoff will be selected.

lowest

highest

negative

4.

MULTIPLE CHOICE QUESTION

45 sec • 5 pts

The Contribution Margin can be increased by ________

Increasing selling price per unit

Decreasing variable cost per unit

Increasing sales quantity

All of these

5.

MULTIPLE CHOICE QUESTION

45 sec • 5 pts

If the Decision Tree analysis is solely based on the costs, the alternative with ______ total or initial cost will be selected.

lowest

highest