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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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The economic analysis, yield, variable cost and the cost benefit ratios of aforesaid treatments are given in Table II.
The treatment T3 showed highest cost benefit ratio value (1:1.95) while lowest cost benefit ratio (1:1.77) was observed in T4.
Brassica seeds and wheat grains were weighed and calculated their values as per local market prices to evaluate cost benefit ratio among control (sole wheat) and different treatments used in the study.
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.
The cost benefit ratio of the scheme is now understood to stand at 2:1 (pounds 2 of benefit for each pound spent), which was better than when it was first proposed in 2004.