What is the preferred option determined by when making decisions on project options?

In project decision-making, the preferred option is determined by a comprehensive assessment that often looks at both the benefits and costs associated with each option. A balanced judgement based on the Net Present Social Value (NPV) allows for a broader evaluation that captures the overall social impacts, while considering both positive and negative effects. This approach highlights the importance of not only focusing on purely financial metrics but also acknowledging social value, which is critical in many projects.

Selecting an option based merely on the highest Benefit Cost Ratio might provide a financial perspective but could overlook other important factors such as social implications and long-term sustainability. Similarly, choosing the option with the lowest Net Present Social Cost can prioritize cost minimization while potentially neglecting the broader social benefits that might come from investing in higher-cost alternatives that offer greater overall value.

Hence, the ideal decision-making approach is often a combination of evaluating both social value and social costs, leading to the conclusion that a balanced judgement that incorporates aspects from both A and C is ultimately the preferred method. This perspective ensures that decisions are not only financially sound but also socially responsible, aligning with the principles of the Better Business Cases methodology.