Correct Answer - Option 4 : Evaluate the viability and worthwhileness of taking up the project
Explanation:
(i) After estimating the amount of material and other direct and indirect cost the total cost can be calculated.
(ii) After the completion of the project the profit obtained from it can also be determined.
(iii) By analyzing the cost and benefit it is possible to decide the viability of a project and the worthwhileness of taking up the project.
(iv) Cost to benefit ratio should be less than 1, which means there must be some profit in taking up the project.