June 2015

1:

A public works project is proposed that has total present - worth benefits of Rs 75 million and total present-worth cost of Rs 55 million. In deliberating this proposal, some members of the Municipal Board have suggested that the project has a total present-worth dis-benefits of Rs 15 million; other members feel that Rs 15 million should be treated as a cost. What will be the benefit cost ratio and net benefits value while considering the dis-benefits as a cost?

A.

1.70 and Rs 10 million

B.

1.57 and Rs 5 million

C.

1.60 and Rs 6 million

D.

1.07 and Rs 5 million

 

Answer : D

Explanation :

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Option: A

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