5. Business Economics
Cost-benefit — Quiz
Test your understanding of cost-benefit with 5 practice questions.
Practice Questions
Question 1
Which feature distinguishes economic appraisal from financial appraisal in project evaluation?
Question 2
Scenario analysis in project appraisal involves:
Question 3
What is the present value of a perpetual annual benefit of \$200 at a discount rate of 8\\%?
Question 4
A project requires an initial investment of \500 and yields perpetual annual benefits of \$100. If the discount rate is 5\\%, what is the benefit–cost ratio (BCR)?
Question 5
Which formula correctly expresses the present value PV of a future amount F received at time t using continuous compounding at rate r?