Cost-Benefit Analysis Quiz

Ten Cost-Benefit Analysis practice questions cover calculations and concepts. Every answer is explained.

Free, with no sign-up.

For High school students and adults reviewing the topic.

About 13 minutes. 10 questions.

How does it work?

Choose one answer or enter a number in the stated unit, then check it.
Round only the final answer to the precision requested.

What will you get?

Review a score and an explanation for every answer.

Question 1An illustrative project has measured benefits of $184000 and costs of $137500 on a common valuation date. Find net benefit in dollars, rounded to two decimals.

Enter a number in dollars.

Answers within 0.005 dollars of the expected value are accepted.

Question 2An option has present benefits of $23100 and present costs of $16500. Find its benefit-cost ratio as a number with no unit, rounded to two decimals.

Enter a number.

Answers within 0.005 of the expected value are accepted.

Question 3A project yields one benefit of $5670 in three years. Use a 5% annual discount rate to find its present value in dollars, rounded to two decimals. Keep full precision until the final rounding.

Enter a number in dollars.

Answers within 0.005 dollars of the expected value are accepted.

Question 4A proposed replacement is compared with an old machine that would still require fuel and repairs. What belongs in the baseline?

Continued operation and the costs of supporting itA future in which the old equipment has no operating needsThe new equipment’s output before it is installedThe replacement’s purchase payment as an expense already incurred

Question 5A firm owns land that it could lease but instead uses for a project. Which cost is relevant?

The absence of a new invoice making the land costlessThe entire historical purchase price charged again each yearThe rental opportunity surrendered by the projectThe project’s expected revenue paid to the former landowner

Question 6Time savings raise property values near a transport project. What accounting issue needs checking?

Dearer property erases passengers’ time gainsThe possibility of counting overlapping benefits twiceA benefit increases in proportion to the owners listedLand value replaces the project’s resource costs

Question 7The financial return to an operator is negative, but a project reduces harm to neighboring residents. What analysis captures both sides?

An account limited to the operator’s cash receiptsA rule rejecting effects that have no customer invoiceA ranking based on the operator’s receipts before construction costsAn assessment covering affected people beyond the operator

Question 8A project’s ranking reverses when demand is slightly below its forecast. What should the analyst report?

The central forecast rounded until both rankings agreeThe dependence of the result on projected useThe construction cost adjusted to preserve the first rankingThe unfavorable scenario deleted from the calculation

Question 9One group receives most benefits while another bears displacement costs. What does a positive total leave unresolved?

Equal household incomes required by the calculationDisplacement ending once the overall net benefit is positiveThe allocation of gains and burdens among affected peopleCompensation already paid by the benefiting group

Question 10An effect matters to a community but lacks a defensible monetary estimate. What is the appropriate presentation?

Describe its scale and limits alongside the valued effectsExclude the affected community from the analysis boundaryChoose a large number to make it dominate the totalAssign a zero because no reliable market quote exists

Answer every question to see and share your score.

Read the topic guide