g In evaluating independent projects, no incremental analysis is necessary between projects. Each project is evaluated separatel

Question

3 years ago

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g In evaluating independent projects, no incremental analysis is necessary between projects. Each project is evaluated separatel

y from others, and more than one project can be selected. Therefore, the only comparison is with the do-nothing alternative for each project.

Engineering

1 answer:

Veronika [31] · Answer 1 · 2022-03-22T00:04:34+03:00

Complete Question:

In evaluating independent projects, no incremental analysis is necessary between projects. Each project is evaluated separately from others, and more than one project can be selected. Therefore, the only comparison is with the do-nothing alternative for each project. True or False?

Correct Answer:

The above given statement is TRUE.

Option: A

Explanation:

The proper response is true because the chosen independent ventures are focused on the net present value and the rate of return, and do nothing additional. The incremental B / C analysis is not needed in the independent projects. Easy ratio B / C should do that. When the B / C > 1 advantages outweigh the costs and the project is selectively provided as there is no budget cap. Thus, the given statement is absolutely the true one.