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Project Management & Agile · Intermediate

Benefit-Cost Ratio (BCR)

Ratio of the present value of benefits to the present value of costs.

Definition

A BCR greater than 1 means benefits exceed costs. It is used in project selection and business cases.

Example

Benefits $300k, costs $200k: BCR 1.5.

Exam tip

Choose BCR greater than 1; higher is better.

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