ACtE08 · Chapter 8Mock Test 07🏛️ Past Licensure QuestionID: b083e4a5
The minimum Benefit-Cost ratio (B/C) for the financial viability and selection of any engineering project should be:
The minimum Benefit-Cost ratio (B/C) for the financial viability and selection of any engineering project should be:
Multiple Choice Options
- A✓ Correct Option
1.0
- B
Less than zero
- C
Greater than zero
- D
All of above
Detailed Technical Solution & Explanation
In engineering economics and project feasibility analysis, the Benefit-Cost ratio is defined as . For a project to be acceptable and economically viable, the discounted benefits must equal or exceed discounted costs, requiring .
Option Analysis:
•
Option A (1.0): Correct. The fundamental economic threshold () where benefits equal or exceed costs.
•
Option B (Less than zero): Negative B/C indicates catastrophic losses.
•
Option C (Greater than zero): between 0 and 1 represents a net loss.
•
Option D (All of above): Incorrect.
Reference: Mock Test 07NEC Licensure Syllabus