OR that has the lowest initial investment cost I ratio: costs are subtracted from benefits. cted from benefits and M&O costs are include costs are added to costs. to costs and M&O costs are subtracted from mples of public sector projects, except: Onal "Apple" products. ent. 4
OR that has the lowest initial investment cost I ratio: costs are subtracted from benefits. cted from benefits and M&O costs are include costs are added to costs. to costs and M&O costs are subtracted from mples of public sector projects, except: Onal "Apple" products. ent. 4
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 17SQ
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![9. In comparing mutually exclusive alternatives by the ROR method, you should select:
a. The alternative with the largest initial investment that has been incrementally justified.
b. The alternative with the largest initial investment with the highest ROR.
c. The alternative whose incremental ROR is the highest
d. The alternative with ROR that has the lowest initial investment cost.
10. In a conventional B/C ratio:
a. Disbenefits and M&O costs are subtracted from benefits.
b. Disbenefits are subtracted from benefits and M&O costs are included in costs.
c. Disbenefits and M&O costs are added to costs.
d. Disbenefits are added to costs and M&O costs are subtracted from benefits.
11. The following are examples of public sector projects, except:
a. Cleaning LITANEY river.
b. Major Sewer system.
c. National and international "Apple" products.
d. National water treatment.
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb2d87d5-ab8a-490f-a2ea-c4e0c64c5771%2Fd4882005-56b9-4243-a932-dda5d6c3525e%2Fdn45r3u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:9. In comparing mutually exclusive alternatives by the ROR method, you should select:
a. The alternative with the largest initial investment that has been incrementally justified.
b. The alternative with the largest initial investment with the highest ROR.
c. The alternative whose incremental ROR is the highest
d. The alternative with ROR that has the lowest initial investment cost.
10. In a conventional B/C ratio:
a. Disbenefits and M&O costs are subtracted from benefits.
b. Disbenefits are subtracted from benefits and M&O costs are included in costs.
c. Disbenefits and M&O costs are added to costs.
d. Disbenefits are added to costs and M&O costs are subtracted from benefits.
11. The following are examples of public sector projects, except:
a. Cleaning LITANEY river.
b. Major Sewer system.
c. National and international "Apple" products.
d. National water treatment.
4
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