Chapter Review: True or False Quiz

This online quiz contains 6 questions. Click on the button next to the selection that best answers the question. To review your results, click on the Submit Answers button displayed after the last question. Good luck!

1		From the standpoint of selecting the better of two alternatives, it does not matter whether disbenefits are subtracted from benefits or added to costs.
			A)	TRUE
			B)	FALSE
2		When attempting to select the best of mutually exclusive alternatives, the one with the highest B/C ratio is the one that should be selected.
			A)	TRUE
			B)	FALSE
3		In a B/C analysis, costs are preceded by a minus sign just as in the PW and AW methods as presented in the text.
			A)	TRUE
			B)	FALSE
4		A B-C analysis (i.e., costs subtracted from benefits) will sometimes result in selection of a different alternative than a B/C ratio analysis yields.
			A)	TRUE
			B)	FALSE
5		To identify the best of mutually exclusive alternatives by the B/C ratio method, an incremental analysis is usually necessary.
			A)	TRUE
			B)	FALSE
6		The interest rate used to perform a PW or AW evaluation of a public sector alternative is commonly lower than that used to evaluate a private sector project.
			A)	TRUE
			B)	FALSE