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

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.

Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2016/11/26

Upvote (0) Views (12) Followers (3) Answers (3) Report Question

by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.

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

by DR MD ANWAR HOSSAIN , Moderator , bayt.com

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

by Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

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

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