Benefit–cost ratio

A benefit–cost ratio[1] (BCR) is an indicator, used in cost–benefit analysis, that attempts to summarize the overall value for money of a project or proposal.The general rule of thumb is that if the benefit is higher than the cost the project is a good investment.In practice, the ratio of present value (PV) of future net benefits to expenditure is expressed as a BCR.These impacts are usually incorporated by estimating them in monetary terms, using measures such as WTP (willingness to pay), though these are often difficult to assess.A further complication with BCRs concerns the precise definitions of benefits and costs.
cost–benefit analysisvalue for moneypresent valuesprofitability indexnet present valueclimate changediscount ratewillingness to payNew Approach to AppraisalBenefit shortfallCost overrunBusiness efficiencyPrice–performance ratio