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Bonus Task (Ch10)

Total questions: 7

Worksheet time: 5mins

Name
Class
Date
1.

The conventional B-C ratio and modified B-C ratio are two same B-C ratios?

a)

True

b)

False

2.

F0 = −25, 000, F1 = · · · = F4 = 8, 000, and F5 = 13, 000. Suppose that the MARR is 20%. Then, the present worth (PW) is?

a)

$934.29

b)

$758.76

c)

$943.92

d)

$879.65

3.

The magnitude of the B-C ratio will differ between conventional and modified ratios?

a)

True

b)

False

4.

Two mutually exclusive alternatives public - works projects are under consideration . their respective costs and benefits are included in the table that follows .project A has an anticipated life of (35) years and the useful life of project B has been estimated to be (25) years .if the MARR is (9%) per year if either of these projects should be selected ?

a)

Project A is acceptable

b)

Project B is acceptable

5.

Determine the B/C ratio for the following project.


First Cost P100, 000


Project life, years 5


Salvage value P10, 000


Annual benefits P60, 000


Annual O and M P22, 000


Interest rate, % 15

a)

1.18

b)

1.61

c)

1.16

d)

1.23

6.

EFG ltd is working upon the renovation of its factory in the upcoming year, and for they expect an outflow of $50,000 immediately, and they expect the benefits out of the same for $25,000 for the next three years. The inflation rate that is currently prevailing is 3%. what is the BCR?

a)

1.14

b)

2.43

c)

1.67

d)

1.41

7.

Disbenefits is the positive consequences to the public resulting from the implementation of public sector project

a)

True

b)

False