Term:Benefit cost ratio: Difference between revisions
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|Term definition=Is the parameter which describes how many €s of societal benefit has resulted from €1 of cost investment. It is calculated by: Benefit cost ratio = present value benefit/present value cost. For example if a project delivers €3k benefits for €1k cost then the benefit cost ratio will be 3/1 = 3. | |||
|Term title=Benefit cost ratio | |Term title=Benefit cost ratio | ||
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Latest revision as of 13:25, 30 January 2014
Is the parameter which describes how many €s of societal benefit has resulted from €1 of cost investment. It is calculated by: Benefit cost ratio = present value benefit/present value cost. For example if a project delivers €3k benefits for €1k cost then the benefit cost ratio will be 3/1 = 3.
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