Which of the following would have the least effect on a cost-benefit analysis?
A)Steadily rising prices
B)Rapidly declining prices
C)Constant prices
D)None of the above

Question

Quizplus · Accepted Answer

Constant prices would have the least effect on a cost-benefit analysis because both the costs and benefits of a project are evaluated at the same price level. In contrast, steadily rising prices and rapidly declining prices can significantly impact the analysis by altering the present value of future costs or benefits.

Which of the Following Would Have the Least Effect on a Cost-Benefit