b. C. d. In a traditional CBA, the environmental and ecological impacts of a project would be: a. Included because policy makers should be concerned about the environment b. Included because they can be easily monetized C. Excluded because they are intangible and have no market value d. Excluded because they were not important 2- The CBR is not a good criteria to use when choosing among mutually exclusive projects because, a. It may not lead to choosing projects with the largest net social gains It may suffer from a scale bias 3- It may fail to achieve efficiency in the allocation of scarce resources All of the above The IRR can tell us all of the following EXCEPT: Whether the project has a positive NPV b. The project's net social surplus a. C. The return on capital used in the project d. Whether CBR is greater than one
b. C. d. In a traditional CBA, the environmental and ecological impacts of a project would be: a. Included because policy makers should be concerned about the environment b. Included because they can be easily monetized C. Excluded because they are intangible and have no market value d. Excluded because they were not important 2- The CBR is not a good criteria to use when choosing among mutually exclusive projects because, a. It may not lead to choosing projects with the largest net social gains It may suffer from a scale bias 3- It may fail to achieve efficiency in the allocation of scarce resources All of the above The IRR can tell us all of the following EXCEPT: Whether the project has a positive NPV b. The project's net social surplus a. C. The return on capital used in the project d. Whether CBR is greater than one
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
Related questions
Question
![1- In a traditional CBA, the environmental and ecological impacts of a project would be:
a. Included because policy makers should be concerned about the environment
b. Included because they can be easily monetized
C. Excluded because they are intangible and have no market value
d. Excluded because they were not important
2- The CBR is not a good criteria to use when choosing among mutually exclusive projects because,
a.
It may not lead to choosing projects with the largest net social gains
It may suffer from a scale bias
It may fail to achieve efficiency in the allocation of scarce resources
All of the above
b.
C.
d.
3- The IRR can tell us all of the following EXCEPT:
a.
Whether the project has a positive NPV
b. The project's net social surplus
C.
The return on capital used in the project
d. Whether CBR is greater than one](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c09cda8-9449-4cfd-99d0-d7ccecd9c5e9%2Fa09df88d-57d0-4e12-87e9-8d8508905cf9%2F0i9rmgg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1- In a traditional CBA, the environmental and ecological impacts of a project would be:
a. Included because policy makers should be concerned about the environment
b. Included because they can be easily monetized
C. Excluded because they are intangible and have no market value
d. Excluded because they were not important
2- The CBR is not a good criteria to use when choosing among mutually exclusive projects because,
a.
It may not lead to choosing projects with the largest net social gains
It may suffer from a scale bias
It may fail to achieve efficiency in the allocation of scarce resources
All of the above
b.
C.
d.
3- The IRR can tell us all of the following EXCEPT:
a.
Whether the project has a positive NPV
b. The project's net social surplus
C.
The return on capital used in the project
d. Whether CBR is greater than one
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Managerial Economics: Applications, Strategies an…](https://www.bartleby.com/isbn_cover_images/9781305506381/9781305506381_smallCoverImage.gif)
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
![Principles of Macroeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305971509/9781305971509_smallCoverImage.gif)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Macroeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781285165912/9781285165912_smallCoverImage.gif)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: Applications, Strategies an…](https://www.bartleby.com/isbn_cover_images/9781305506381/9781305506381_smallCoverImage.gif)
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
![Principles of Macroeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305971509/9781305971509_smallCoverImage.gif)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Macroeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781285165912/9781285165912_smallCoverImage.gif)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Brief Principles of Macroeconomics (MindTap Cours…](https://www.bartleby.com/isbn_cover_images/9781337091985/9781337091985_smallCoverImage.gif)
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics, 7th Edition (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781285165875/9781285165875_smallCoverImage.gif)
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning