An economic indicator of the efficiency of a proposed project, computed by dividing benefits by costs; usually, both the benefits and the costs are discounted, so that the ratio reflects efficiency in terms of the present value of future benefits and costs.
An economic indicator of efficiency, computed by dividing benefits by costs. Usually, both the benefits and the costs are discounted so that the ratio reflects efficiency in terms of the present value of future benefits and costs. Benefits for projects should exceed costs or the ratio should be greater than 1.0.
The ratio of the value of a measure's savings to its cost.
Analysis tool used to estimate the anticipated benefits for a specific project. Estimated by dividing the dollars of discounted benefits achievable by the discounted costs.
The ratio of the present value of the economic benefits stream to the present value of the economic costs stream, each discounted at the economic opportunity cost of capital. The ratio should be greater than 1.0 for a project to be acceptable.
An analytical tool used in public planning; a ratio of total measurable benefits divided by the initial capital cost.