Finc 330 Business Finance Quiz 81
81) Which of the following statements regarding the valuing of costs and benefits is NOT correct?
A) The first step in evaluating a project is to identify its costs and benefits.
B) In the absence of competitive markets, we can use one-sided prices to determine exact cash values.
C) Competitive market prices allow us to calculate the value of a decision without worrying about the
tastes or opinions of the decision maker.
D) Because competitive markets exist for most commodities and financial assets, we can use them to
determine cash values and evaluate decisions in most situations.
Answer:
B
