The Benefit-Cost Ratio (BCR) is a financial metric that is widely used in cost-benefit analysis. It is a numerical expression of the cost-effectiveness of a project, decision, or anything else of that nature. It is calculated by dividing the benefits of a project by its costs. The result is a ratio that tells you how much benefit you can expect to get for each unit of cost. If the BCR is greater than 1, the benefits outweigh the costs and the project or decision could be a good investment. If the BCR is less than 1, the costs outweigh the benefits and it might not be a worthwhile investment. Therefore, BCR can be a crucial factor in decision making, helping to identify and choose the most cost-effective options.
When in doubt about a decision, a potential project or changes to a venture, you need a reliable eva...
Download template