Question

The statements which approve Breed Cost Ratio (BCR) are: A. Used in project evaluation
B. BCR < 1 indicates project feasibility
C. Ignores time value of money
D. Used in selecting entrepreneurship products Choose the correct answer from the options given below:

• A. A, B only
• B. A and D only
• C. B and C only
• D. A, C only

Hint:

BCR > 1 → Profit
BCR < 1 → Loss

Answer 1

The Correct Option is B

Concept:
Benefit Cost Ratio (BCR) is a financial indicator used to evaluate economic feasibility of a project.

Step 1: Understanding BCR

• Formula: \[ BCR = \frac{\text{Present value of benefits}}{\text{Present value of costs}} \]
• If BCR > 1 → project is feasible

Step 2: Analysis of Statements
Statement A

• BCR is widely used in project evaluation.
• Hence correct. Statement B

• BCR < 1 means loss → not feasible.
• Hence incorrect. Statement C

• BCR actually considers time value of money (discounting).
• Hence incorrect. Statement D

• Helps in selecting profitable enterprises/projects.
• Hence correct.

Step 3: Final Evaluation

• Correct statements: A and D \[ \boxed{\text{Option (B)}} \]