Cost-benefit ratio

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Cost-benefit ratio

The net present value of an investment divided by the investment's initial cost. Also called the profitability index.

Cost-Benefit Ratio

A ratio of whether or not and how much profit will result from an investment. It is calculated by taking the net present value of expected future cash flows from the investment and dividing by the investment's original cost. A ratio above one indicates that the investment will be profitable while a ratio below one means that it will not. A cost-benefit ratio is also called a profitability index.
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First, we need to make the right investment decisions, with the highest cost benefit ratios.
Merseytravel chairman Mark Dowd last night said: "We believe in this, and we believe the cost benefit ratios are better than before because of potential developments in Kirkby.
Healthcare organizations can measure their security vulnerabilities with a comprehensive automated questionnaire; obtain guidance on needed enhancements; and establish cost benefit ratios, or return on investment, for those enhancements.