The cost/benefit ratio
Preparing your project: financial analyses
Practical sheet REF: FIC1148 V1
The cost/benefit ratio
Preparing your project: financial analyses

Author : Sophie TOUBLANC

Publication date: February 10, 2013 | Lire en français

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5. The cost/benefit ratio

The benefit-cost ratio compares the cost of different options with the project benefits. It helps to select the best alternative:

  • a benefit/cost ratio greater than 1 means that the benefits are greater than the costs;

  • a benefit/cost ratio of less than 1 means that benefits are lower than costs.

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