A high benefit/cost ratio is generally considered to be attractive. Following is

Question

A high benefit/cost ratio is generally considered to be attractive. Following is a list describing circumstances where decisions makers might not want to support the project. Which item does not belong on the list?
   a. Because the ratio "hides" the size of the benefits and costs, the project may be too small to warrant support
   b. Other projects exist with more favorable benefit/cost ratios
   c. The fact that benefits and costs are both estimates will yield unreliable results
   d. The benefits derived from the project may arrive too far in the future to be attractive

Explanation / Answer

Statement :

A high benefit/cost ratio is generally considered to be attractive.

List describing circumstances where decisions makers might not want to support the project.

Because the ratio "hides" the size of the benefits and costs, the project may be too small to warrant support

The fact that benefits and costs are both estimates will yield unreliable resultsThe benefits derived from the project may arrive too far in the future to be attractive

Option b : That is Other projects exist with more favorable benefit/cost ratios

is correct choice.

Raeson :

Decision makers always try to get profit from the project. If there is a chance to get more profit generated project they shall take the project instead of doing existing project.

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