You are reviewing several feasiblity reports.One report shows a benefit cost ratio of 2.1.This means?

Question

A. The costs are2.1 times the benefits.

B. The profit is2.1 times the costs

C. The payback is2.1 times the costs.

D. The cost is2.1 times the profit.

Muhammad Farooq · Answer

In my opinion, C. The payback is2.1 times the costs.

DR MD ANWAR HOSSAIN · Answer

Thank you. I agree with Mr. Md. Fazlur Rahman

Md Fazlur Rahman · Answer

None of the above.

Benefit cost ratio is : Present value of all future cash inflow divided by present value of all future cash outflow) .

So, the answer may be worded as :Benefit is 2.1 times the cost