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Apr 14, 2026 ·
https://www.investopedia.com/terms/b/bcr.asp
Apr 14, 2026 · The Benefit-Cost Ratio ( BCR ) is a crucial metric in cost-benefit analysis, providing insights into project viability by comparing expected benefits to total costs.
A BCR is the ratio of the benefits of a project or proposal, expressed in monetary terms, relative to its costs, also expressed in monetary terms. All benefits and costs should be expressed in discounted present values. A BCR can be a profitability index in for-profit contexts.
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