In the context of project appraisal, a project is considered economically viable if:
A. Social costs are ignored
B. The present value of benefits exceeds the present value of costs
C. The present value of costs exceeds the present value of benefits
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!