Benefit Cost Ratio

BENEFIT COST RATIO (BCR)

  • BCR is worked out by dividing the present value of cash inflows by the present value of cash outflows.
  •  If the BCR is more than one, that project is accepted and if BCR is less than one the project is rejected.
  • Among the different projects, the project with highest BCR is to be selected.

BCR
Last modified: Tuesday, 24 April 2012, 10:04 AM