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
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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
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
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