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Definition of 'Benefit Cost Ratio - BCR'
A ratio attempting to identify the relationship between the cost and benefits of a proposed project.
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Investopedia explains 'Benefit Cost Ratio - BCR'
This ratio is used to measure both quantitative and qualitative factors since sometimes benefits and costs cannot be measured exclusively in financial terms.
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If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios.
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At some point in your life you will have to deal with a series of fixed payments over time, so it pays to know how to calculate them.
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