IS-276.A: Benefit-Cost Analysis Fundamentals Answers

1

The end result of a Benefit-Cost Analysis is a Benefit Cost Ratio, which is calculated by dividing a mitigation project’s benefits by its costs.

  • True
  • False
2

OMB Circular No. A-94 Revised:

  • Provides guidelines and discount rates for Benefit-Cost Analysis of federal programs
  • Provides guidelines on how to develop a Flood Insurance Study
  • Provides guidelines on how to develop a cost estimate for a mitigation project
  • Provides guidelines on how to determine the First Floor Elevation of a structure
3

The terms Project Useful Life and project effectiveness mean the same thing.

  • True
  • False
4

The method by which the future benefits of a mitigation project are calculated and compared to the project costs is called:

  • Benefit-Cost Analysis
  • Mitigation
  • Loss Avoidance
  • Risk Analysis
5

The Benefit-Cost Analysis website provides program guidelines, methodologies, and software modules for conducting a benefit-cost analysis for projects that mitigate risk from a range of natural hazards.

  • True
  • False
6

The rate of flow for each flood event, which increases as the flood event gets larger, is called:

  • Flood Discharge
  • Streambed Elevation
  • Flood Elevation
  • Flood Probability
7

The Benefit-Cost Ratio is a numerical expression of the cost-effectiveness of a mitigation project. A project is considered to be cost-effective only if:

  • The Benefit-Cost Ratio is equal to or greater than 1.0.
  • The Benefit-Cost Ratio is equal to or greater than 1.5.
  • The Benefit-Cost Ratio is equal to or greater than 0.5.
  • The Benefit-Cost Ratio is equal to or greater than 2.0.
8

Losses that can be avoided as a result of completing a mitigation project include all of the following except:

  • Loss of function
  • Structure demolition costs
  • Emergency management costs
  • Physical damages
9

FEMA has provided resources such as websites and training courses to provide the skills and knowledge needed to conduct a Benefit-Cost Analysis or review a completed Benefit-Cost Analysis.

  • True
  • False
10

The Base Flood Elevation is the height of the floodwater at the project site if the:

  • 10-year flood, also referred to as the 10% annual chance flood, occurs
  • 50-year flood, also referred to as the 2% annual chance flood, occurs
  • 100-year flood, also referred to as the 1% annual chance flood, occurs
  • 500-year flood, also referred to as the 0.2% annual chance flood, occurs
11

Project Useful Life is the estimated amount of time (in years) that the mitigation project would be effective.

  • True
  • False
12

EMI provides both classroom and independent study courses on how to use the Benefit-Cost Analysis Tool.

  • True
  • False
13

Which office or department requires FEMA hazard mitigation projects to be cost-effective?

  • Office of Management and Budget
  • Department of the Interior
  • Office of Personnel Management
  • Department of the Treasury
14

The 100-year flood is a flood that has a ___ percent chance of occurring in any given year.

  • 20
  • 50
  • 1
  • 100
15

Flood elevation is the level to which the water rises during a flood event.

  • True
  • False
16

Which key Benefit-Cost Analysis term is often referred to as the “time value of money”?

  • Net Present Value of Future Benefits
  • Project Effectiveness
  • Present Value Coefficient
  • Discount Rate
17

A community’s Flood Insurance Study is a reliable source for flood elevation data.

  • True
  • False
18

The Streambed Elevation:

  • Is the same as the Base Flood Elevation
  • Is the peak discharge value for a flood event
  • Is the level to which the water rises in a flood event
  • Is most easily determined from a Flood Insurance Study
19

Project Effectiveness:

  • Is the same as cost-effectiveness
  • Is a measure of how well the project will reduce future damages
  • Is based on the total project costs
  • Is the amount of annual benefits that would occur for each year of the life of the project
20

The Base Flood Elevation for a structure is the same as the 100-year flood elevation for that structure.

  • True
  • False
21

Each combination of Project Useful Life and discount rate has a fixed Present Value Coefficient.

  • True
  • False
22

In general, the First Floor Elevation is at the lowest floor of a structure.

  • True
  • False

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