In the context of project appraisal, a project is considered economically viable if:
A. The present value of costs exceeds the present value of benefits
B. The present value of benefits exceeds the present value of costs
C. Social costs are ignored
D. Only financial costs are considered
Answer: Option B
Solution (By JKSSB Mock Tests)
In cost-benefit analysis, a project is viable when the discounted present value of its benefits exceeds the discounted present value of its costs (positive net present value).
No comments yet. Be the first to start the discussion!