What is BCR 1.5 and BCR 5:2 means?

Submitted by PMP Fighter on Tue, 05/27/2014 - 04:12
PMP Fighter's picture

Am i correct?

For BCR 1.5 :

1 unit of "cost" can make 1.5 unit of benefit.

For BCR 5:2 :

2 unit of "cost" can make 5 unit of benefit.

That mean 5 divide 2 also equal :

1 unit of "cost" can make 2.5 unit of benefit.

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kumarks984

Tue, 05/27/2014 - 05:14

BCR = Benefit Cost Ratio = Revenue/Cost

So for X units of Revenue/Y units of Cost = Z units of BCR

For BCR 5:2 = 5 units of Revenue and 2 units of Cost will result in 2.5 units of BCR.

Hope it helps.